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Fresh sparks In 
Aegean 
powder keg. Page 3 



No.30;i97 




s 


EUROPE’S BUSINESS NEWSPAPER 


Monday March 30 1987 I I D 8523 B 


World news 


Business summery 


oner eases to raise 
tension $ 400 m 











im 


EMS Mr»rch27 1987 










t ( 1 n U; < (f t r »r« ;.l « I r '-1 :< ~j’A 




wmmmm 


was re-etecteddiaaixraaof the He- 
rat Party. Page 2 < ... 

Polish prices rise 

The PsIi&Govenmisxtratoed flood,' 
fuel and energy prices bat warned 
ft had takmi an economic risk by re- 
during tire scale of incr e ases under 
pressure from the entzhtry^ ofiScU- 
trade unions. 

Soviet honesty plea 

Alexei Adzfanbei, 82, sao4n4aw of 
late Kremlin cbkiTfikita Xhrusb* 
dmvcaQed In a Moscow journal for 
rune honesty in the presentation of 
Soviet history, saying co nstan t re- 
writing at htotey .books had tamed 
young people into tynics. 

Siberia for lobiess 

A quarter of a nriffioa people are, 
not of wnfc in the soattern Soyiet _ 


>! vf ?! '' I* ' j r 


lOll.V.I W»T 

Wll’V.'iWi!? 




OVERSEAS CHINESE Banking 
Corporation, and Umted Ovraeas 
Bank; two of Singapore’s lea din g 
h anks , saw modest profit recovery 
last yean Page 24 . .. 

SEKESUI HOUSE, Jqmifr largest 
home builder, showed a grfnaf 1BJ 
per cent in pretax profits, to 
YM.13W^>lSS.1in) in fte yriff to 
January. .... 

PANAMA'S flag of cons ehlenRe 
stopping fleet has expanded by 
12m gross tons since the end of 
IASS to a record, total of 5B.2Sm 
gross tons, according to official fig- 
ures dne to be retaned today. Pap 
29 

AGOSTA, itaGan aerospace comp*- 
ny which took part in last year's un- 
successful E atopean consortium 
hid for Westland Helicopters of -the 
UK, has returned to the black far 
the first time in three years to post 


Thatcher takes the campaign trail to Gorbachev 


'AtmlmM 


MBS MARGARET THATCHER, 
the* UK Prime . Minister, , will this 
-mormng start several hours of talks 
With Mr Mfldiafl Gorbachev, tiie So- 
Viftt .feeder, .after jpefey. 

day agfatteeilig- and'-on the cam- 
paigntrrfi around, Moscow to pro* 
eM egpeotodag coverageiar Brit- 

.. Sw mated at monastery, went oo 
several TODt-abcwts, met some alle- 
gedly ordinary 1 Russians at k*"* 
and stated toundasopermarket 
vritere gte bought breed, batter, 

r br m t z a and a tin nfpi Wuii^ Thh ’ 

-was paid &r by her private secre- 
tary and qmcUy taken away by her 
p erso na l detec tive . 

The Prime Minister's " wtfag 
with Mr Gorbachev will conoetr a te 
onannscantnd^MtiwramOvriof 

l i riknm HiiibM ihiDB missiles faun 

Europe. Mrs Thatcher will seek 
reusmmice -about the irapKcation 
for short-range missiles and for tbe 
broader strategic and secority bal- 
ance. 

However, ftavda, the Communist 
Party ' newspaper, yesterday ac* 
cosed the West of “muddying the 


BY PETER RfflDELL, POLITICAL EDITOR, M MOSCOW 


waters” after the US had Tcompfi- 
cated the issue hy proposing to con- 
vert Pershing 2s to dtarbrange 
weapons. In contrast to the Soviet 
Union's “fciystal-dear proposals," 
Pravda said Nato was approwdriiu 
"the matter in a roond about way. 


nal rather than subst an ti v e. With 
British TV viewers very modi in 
mind, Mrs Thafchar was, however, 
vigorous in denying any thought of 
a general election . and advised 
inquiring reporters to enlarge then- 
view. She was here “to represent 

my mmrfr yrtnnn Mid^ Bno Tiwharfnn* 

Yet the style was the familiar 


Indeed, judging by yesterday's re- 
ception, Mrs Thatcher would have 
swept the Moscow suborbs in any 
poU She was appended wherever 
shewed and there appeared to be 
genuine curiosity as people peered 
oat of the windows of tower blocks 
and crammed snowy and sfaufay 
veins to catch a tfmpss of hen 
Viritins a fiat on thelGth floor of 
one 17-floor block, Mm Hatcher 
was Bated fay one Anna Yegorova, 
who presented her with need and 
said she would fike to visit Britain. 
Next door the ordinary Russian, 


d ome d Hnerian fflrflw A y innnn » 
tey at Zagorsk, the scrum was 
such that Foreign Secretary Sir 
Geoffrey Howe with a camera 
round his neck like a proper tourist. 


scene with m onk s in the monastery 
ami the meeting of ordinary people 
and a two-yearaid housing deretop- 
ment in southern Moscow, ft may 
have been Kiylrtsktye yesterday (it 
could easily have been the election 
campaign in any new town in Brit- 
ain - and no doubt wfll be later this 
year). 


out not to be quite so typical after 
alL He works for the Department of 
Foreign Relations. He onlookers 
woe dearly bemused- by the ac- 
companying media circus of over . 
200 journalists, p ho togr ap hers and 
television crews who spent the day 
jostling and, on a few occasions. 


njjrrrr-rJ 

H 7 vt p t 


**• (n.7m)forW08.Pngaa 

less workers to' Siberia, an offic ia l - «« French compo- 

newqnqjerrqwrted. ter plans to launch a, IT* 

- - 800m ($133m) bond issue with eqtd- 

IT8HCJ rlltS pipeline . tywairante to help finance iterator- 

te, a. .tana «e "S? 


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UK 

Companies 


Britain presses US 
to join protest over 
Japan’s trade policy 

MY LIONEL BARBER IN WASHINGTON AND IAN RODGER IN TOKYO 


BRITAIN Is preorfng the IB to join 
in a concerted protest against Ja- 
^’seffeirte to keep foreign compa- 
nies out of its domestic tefecomnm- 

niratinnt wwlwt , 

Hris is the. latest twist in the rifl- 
ing trade tension between Europe, 
the US and Japan which otherwise 
largely centres an electronics. 

The UK te -understood to have 
wnlnul the VMiwm Administration, 
to send a lettasr to Mr^ Yasuhico Nak- 
agO Bg , fhe Japaoess Prime Minis- 
ter, to protest against the terms of a 
merger between two rival consortia 
which are seeking a licence to op- 
orate as Japan's seoondtdecommur 

,iw<j»fT nT HB MWW . 

■, Vnnri g n mr mKwdim Knt HmrfwM w 

2 per cmitrtuxs, and fesripass 
~8te prohibited ftontaerving-as ex- ■ 


semkxmdnctoni in third mar* 


The Jqmneee Government react- 
ed wife an unusual degree of anger, 
threa tenin g to repudiate the eight* 
month-old bilateral semiconductor 
agreement with.the US and com- 
plain to tiie General Agreement on 
Tariffs and Trade (Gatt). 

The *mhtKHt Japanese view is 
that the US has acted emotionally, 
became of amdety that Japanese 
semiconductor technology is raptf- 
ty snrpassong t hat of the US in 
some areas. 

At the time, however, To- 
kyo is reriiing to pot together a new. 
pacfc^ of marfet-opeOing men* 
surea derignedtojfifftue what ft 
cognises is a. dangenms risejtopro- 
t&tignist and. in particular^ anti*. 
Japanese aenfiment wSMnthe US 


A senior official of the Ministry of 
International Trade and Industry 
(Mxti) is to go to Washington next 
week to attenqrt to dissuade the Ad- 
ministration Iwww lntjilaniyilfirtg ' 
tiie punitive teriffa in advance of 


a nnounced in r Tbkyo a fertid^it 

' 1 . 

- The ptessin e .poses an 

acute dflemmatM-Mr Reagan, who 
is doe to tueeflfr Nakasone at md 
of next month to dneuss trade mat- 
ters. 

Last Friday, in Washington's first 
unilateral trade retaliation since 
the Second World War, Mr Reagan 
derided to double the im p ort price 
oTa wide range of Japanese deer 
trank products. The action fallowed 
allegations that Japan had failed to 
five upto promises to stop dumpfag 


The r e were repoacts yesterday, for 
ff ff i nptei flint: " flip Government 
mold soon tsmbaoce a dedsknito 
buy several USmade Cray super- 
c omputes. The US Go w n i me n t 
has ccmqdalned that US supercom- 
puter makes do not have fair 
access to Japanese puhfiesector 

Mr Nakasone has also ordered 
the Ministry of Fasts and Telecom- 
immkatioas to. finite wirtywin* 
tion to tiie row over tbe estabKsh- 
znehtirfjsgimys second internaten* 
al telecoms carrier: 


One view in Tcdcyo was that a suc- 
cessful resolution c£ the trade crisis 
migfat bolter Mr Nakasonefc sag- 
ging political position at heme. 

The announcement enfariated 
Mrs Thatcher and nqbwbwd a 
storm of protest in the US Senate 
which voted unanimously IS days 
ago fwa motion, calling tor retalia- 
tion by .President Reagan. Mr Mal- 
colm g US Commerce Sec- 
retaiy, and Mr Clayton Yeoter, US 
Hade Representative, have also 
madpitepog protests to4i» Japa- 
nese Government. 

Cabte fe Wireless of tire UK has a 
20 per cent stake in International 

two groups bidding far the tekemns | 
licence. Bat US flma are also hegy* | 
ity involved. Pacific Trieos has a 10 
per cent mt Merrill lynch > 
has a 3 per cent stake. Heightened 
US interest abo arises from a Cable 
& Wireless projert to lay a trana-Pa- 
rific cable between the US and Ja- 
pan. . 

CmrionBed on Page 20 

- Background, Page 2; Ecfitetel 
co mm e n t; Pay 18 


GEC’s Foxhunter radar system 
will require a further £ 250 m 


BY LYNION McUUN M LONDON 

A FUBTHER HCSOm (S400m) may 
have to be qieut if the British Royal 
Air Race’s advanced Foodumter air 

teed^GBC, theUKriecbxurics 
grot^fatoPMrttoieqoiremarts. 

Tfw* Ministry of - D oftnce oo&* 
finned yesterday that it is renego- 
tiafing its contrwrt .fOT the £50hm 
radar system which, is installed in 
fjp Angte G erm aa- ftaHm ftuudo 
fighter.- 

ft also confirmed that it was lock- 
ing at aUernative r ada rs for the 
Tbrnack. The Ifaxhurite • pro* " 
gramme would ’he* viewed against 


hunte system could require tm to 
£2S0m to be put right 
Tbe RAF has entered 1B2 Torna- 
do interceptors. The radar is de- 
signed to detect aircraft at ranges 
of over 100 mi l es md to fhwi m>d 
otmtinne to track manoeuvering tar- 
gets wink seeing alarge number of 
tmgets simultanBcrady. The Foxy 

hnwter rafter ytnt fur tnri-tiw 

range req uiremen t, and there are 
understood to be difficulties in 


tiring etee" the RAF said. 

Fbxhxmter is one -of the l a rgest 
wrf most important con - 

tnetewt GEC-The proUems with ft 
foDdw tim ftdtirii Government 1 s de- 
riakm in December -to scrap the 
C930m CSC Nanrod system be* 
cause of tire raynpartys i natefity to 
pe rform ance • wifl i ln an 
aocepfaible timawcrie. 

- Last ntobt CSC refused to eom- 
roent. H o w e ver , an executive at the 
compaity conceded that the Foac* 


(toe^xecative at GBC said: “One 
proMem could be solved, at the ez- 
pense-of nmmg another probtem. 
It is possible that a compjete new 
syaten was needed,” he said. 

Several Tbmado i n tereqi to r air* 
oaft are flying witii steel ballast in 
ptece ofiadara and thosewifh rad- 
ere have Findtuntes built only to 
an interim sta ndar d. These were an* 
carted Ity tiie HAFon the basis that 
tiie radar wouid be in^roved. 

. The RAF said yesterday these 
Tornado ¥2 interceptors were sufft* 
tiente-wutkaUe to have been de- 
dared operational to the North At- 
lantic Treaty Organisation. T2te 


Tornado F3 in terceptors coming fa- 
to. service later tiris year “will not 
have an operational capability to 
the u Hiffli ito standard,” 

MrPrterLevene,tiiedriefofde- 
fence jRocuremari: and a severe cri- 
tic id. the Nimrod prog ramm e, will 
apt far the most com m ercially and 
mflitarity suitable solution to the 
problem of the rwi* 1 -. 

GBC was awarded the original 
contract to develop the Fbadnmter 
radar on the basis of getting Its 
costs reimbursed tty Ihe MoD ptos 
an agreed profit Afte r the Nhnrod 
fiasco, the MbD wants GEC to agree 
a fixed-price co nt ract, over an 
agreed timescale to bring the Bow 
hunter radar up to the RAF*s re- 
quirements. 

Tbe talks are fihety to be conten- 
tions. GBC is expected to argue: « 
it did with -the Nimrod contract, 
that not all tbe problems with Fox- 
hunter are of its own making. 

mm p a ny k hlffJy to w gw> it 

was imrea&stic-far tfae-RAF tp ex- 
pect a radar with such advanced 
fe at ures to be ready in the time 
available. 


Years: how mamrfactur- 


Arts-Seriewx .... 

World Guide 
fXmstrndSt^a ...... 


w—wittr fthwi 38 , 

M fa)tolM»rfah........ 21-22 

Mux. n ........ u ..»^M... 1» 

to 

Lambud... ]| 
Mansgwwwit . ..... 27 

Men and Matten .... r .. ...v^„ 38 

fancy Markets • mum *. * • 38 
Stac k : m a ri cete ^Bourses . » 

*rWa08trert....r38-S7 

.... - ■ -London. 

25 Weather ...................... 28 



r 


MUiNJJAx 

PAGE 


iNTERVJEW 


MrBettiaif Craxi* 

formw I tatHan 
' Prime Minister 

talks to 

JolmWjdes^ 

Page 11 


nrivatisatWHi: preparing to 


eiecmraty industry. ... — .ib 

Editorial comment: chip trade wax; UK 

criminal justice 18 

'Foieigir Affairs: state of play in East- 

West diplomacy - 19 

buoahud: dilemma in Brussels over re- 
seat and development............ 19 

Ireland: Haughey warns of a tight bud- 
get 20 

Manageuusxt: Playboy seeks to alter its 

image ...............27 

Surveys: West Berlin 13-15 

Australia......... Section in 


cata people were Mrs Thatcher, the 
bearded TnnnlBI and p f many old 
wamm in the town sbyty giving 
Bttie waves to her. Mrs Thatcher, 
hoard the jntmks’ choir sfagjng OM 
Slavonic riwnbt and saw hwwrffftd 
murals and icons. from the early 
15th century, later receiving a re- 
cent icon in that style. 

She eoded tte day equally splen- 
didly at a performance of Sunn 
lake at fhe Bzrishtri Theatre where 
MU art next in Mt end Mm Gfllte* 


the KGB. 

At the qptex&d golden and blne- 


throughout was 

to see. the meaning of what had 
happened unite Mr Gorbachev 
bath internally and exter nally , 
speaking at a lunch at the monas- 
tery he called for the freeing of peo- 
ple and lit a re»T»d)ft ihning py sex- - 
vice as a symbol of hope to show 
her solidarity with Christianity in 
tire Soviet Union. 


On her Saturday flight to Moscow 
Mrs Thatcher gave an I nt er view in 
which she the Hnfc be- 

tween arms control bimI human 
rights as pretty realistic. "We don't 
do tbe diplomatic nicety. We get 
down to the nitty gritty. I respect 
him, and he respects me.” 

Mrs Thatcher stressed her inter* 
est in seeing the extent of change. 

In terms whe 

stressed that freedom and justice 
meant tbe **^* iw ‘ to do better for 
one te fam ily and the right to private 

property. 

While stressing that she was not 
negotiating on arms control, Mrs 
Thatdber said tbat it was important 
to keep security in mind. “The ob- 
jective Is not anna reduction. It is 
one of freedom and justice, together 
with arms reduction.” 

Mrs Thatcher, who received a 
message of good wishes from Presi- 
dent Ronald Reagan just before she' 
left, said she had not decided 
whether she would visit the IS af- 
ter Moscow, 

Foreign Aifata. Page 29 


By Mchael Caasatf, PpWcal 
Correspondent In London 

MR DENTS HEALEY, the British 


Infighting delays' 
Peking’s decision 
on Hu successor 


BY ROBERT THOMSON M PEKING 

POLITICAL infighting within a dt* 

tnriwfl fihfnove l ewfanehip piwnmw B 

ting the appo int m ent of a successor | 
to Hu Yaobang, the deposed Gen- t 
oral Sacntaiy of tin ruling Gonh t 
meurist Party, according to diplo- t 
niblnMfitg. 

Hu wffl not be replaced until a t 
fiill party congress in the autumn, £ 
Mfi Mw ig to a weekend announce- 
ment at a rare press conference f 
which saw senior leadership con- t 
tenders on public display. € 

Zhao 25yang. China's re f o rm * t 

nwwfiwd Prrrm» lifiniid»»r j uriTI rnm ni n c 

acting leader of the 44m member y 
party until tiie Congress. H Zhao is i 
canfizmad as party dneL tin three t 
vtoepremtes on show at Satur- 
.day's press con fer e n c e would be a 
front-runners to succeed him os fj 
Prime Minister. j 

The struggle far the Qxmese lead- y 
ersfatohteto^ win depend on the e 

niitjM«n» nf theg ontmnhig haitiehg- B 

(ween supporters qf eco n omic re- « 
fijon and Goss who favour a return | 

to nrtfin Ay Uwrimi _ 


d!Iart week’s sitting of the National 
Peeples Congress -Chinrfa nearest 
equivalent to a P&rfiament at vrinch 
the .disgraoed Hu made a .su r prise 
reappearance only to be pubficty 
criticised' expect intense political 
manoeuvring leading up to fhe 
ISto Party Congress. 

Yao Yffin, one of tiie tinee vice- 
premiers at Saturday’s press con- 
ference, said that Hn had *Wced to 
resign.” 


Hu was demoted in sndJamuuy, 
and Chinese so u rces say he was 
forced to resign after dashes with 
the paramount leader, Deng Xiaop- 
ing, and other elderly party mm- 
bos over num e rou s issues, includ- 
ing his liberal views and his at- 
tempts to farce the re ti reme n t of ri- 
derty leaders. 

H Zhao becomes party dnri later 
this year, then two otter vice-pre- 
miers at the Peking press cante- 
ence, Li Peng and Ran Jiynn, will 
be leading candidates far the va- 
cant position of premier while Yao 
Yffin, 76, who should be hi tiie twi- 
light of his career, is abo reported 
to hove an outside chance: 

Ii Peng was assertive In his 
answers and, significantly, was 
flanked at tiie official table by Turn 
Jtyun and Yao YHfa, even though 
Yao is senior to him. Asked by for- 
eign correspondents if tire seating 
arrangement, always an Important 
guide In Chinese politics; was a 
good sign far his prospects as pre- 
mier, Ii Pang; a political conserva- 
tive, said: TSierete no stidi linkage. 
H vice-premier Yao Yllin is willing, 
1 am ready to change serfs until 

him ** 

Li did not offer to swap serfs with 
Tian Jtyun, a strong support er of 
econo m ic reform. Tian headed lias 
fav o uri te far the premier's post last 
year after several impressive public 
p erformance s, but now aeons to 
have dipped far behind, and twice 
had his answers clarified fay Yao 
Yflin. 


anaizs, yesterday attacked White 
Hone officials far what he 
ctatme dl was on attempt to hdp 
Prime Minister Mmpnet 
That ch e r's re-election prospects 
by attacking labour defence pol- 
icies. 

Mr Healey, who was with Mr 
Nefl Knmock, the opposUon La- 
bour Party L ea d er , when he saw 
the US President in Washington 
on friday, a c cus ed a White 
House' apelnsEss® of ffistarting 
what was srfd timing fhe meet* 
Nfc 

He said ft a pp e ared flat, while 
the President ha§ made it dear 
he fid not intend to interfere la a 
British election issue, some of 
tiie President’s advisers bad 
thought it would be “a good Ides 
to fay to help Mis Thatcher in 
her election batties.” 

Speaking on BBC tetafekm’s 
programme “Ufa Week, Next 
Week,* Mr Healey added: 
“Whether tins was a re wa rd for 
Mia Thatcher bring the aaSj 
statesman in the world to defiver 
her impfidt confidence in Presi- 
dent Reagan'k integrity over fin 
Iran-Contra affair or whether it 
has some more sinister meaning 
I de not know* 

Mr Healey that the 

President, who had mistaken 
Mm far fa Anthony Arian d, tin 
British «ri»— to* to the US, 
had heen badly briefed by hn ad- 
visas. He also said he had held 
separate talks with fa Paul 
NKze, the President's yAl ad- 
viser on arms control, who had 
not raised aqy criticisms of La- 
bours defence strategy. 

Ihe labour team had expected 
the State Department to issue a 
statement after the White Home 
meeting, bid it was made by Hr 

lltwrHw R iliimilf r, rfii4 Whtfri 

Home spokes man . Mr Kii w iw k 
and Mr Healey are denying that 
some of the issues covered in the 

statement - such as the Imnfied 
threat which Labour pofiefes 
posed to the Geneva arms talks- 
wen raised in tiie se s sio n with 
tiie President. 

The US con d em n ati on of La- 
bour's policy is certain to enforce 

the views of some within the par- 
ty that tiie visit should not have 
taken place because outright re- 
jection of Its defence stance - 
however it emerged -was inevi- 
table. 

flat Mr Ktnnw rft l amuhwd 

tennined to promote forcefully 
tin poficy in the US 

B ackgro u nd, Page 5 



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Financial Times Monday March. 30 1S8T 


OVERSEAS NEWS 


Davy McKee 
shares South 
Korean steel 
plant orders 

By Maggie Ford In Seoul 
A GROUP of European com- 
panies including Davy McKee 
of the UK have won contracts 
worth $L50m <£94m) to build 
a stainless steel proceesing 
plant in South Korea. 

Letters of Intent bare also 
been sent to three Japanese 
companies and Oecim of 
France for a $350m cold rolled 
steel mUl, marking an important 
mpansiion of the country's steel 
Industry. 

7%e other European com- 
panies involved in the project 
are Krtspp of West Germany 
and Voest Alpine of Austria. 
Davy McKee’s part of the con- 
tract, for an annealing and 
pickling line, is worth $48m. 

The stainless steel plant is to 
be built at the state-owned 
Pobang Iron and Steel Com- 
pany's site on South Korea’s 
east coast; while the cold rolled 
mill will form part of the com- 
pany’s new complex at Kwang- 
yang Bay In the south. 

Davy McKee has already won 
contracts to build two blast 
furnaces worth f78m each at 
the Kwangyang Bay complex, 
and two more are planned. The 
first blast furnace Is expected 
to be opened next month 
following its completion six 
months early. 

Alfonsin chooses 
onion leader 

By Tim Coooe In Buenos Aim 
A union leader, Mr Carlos 
Aide re te. Is to became Argen- 
tina's new Labour Minister as 
part of a government strategy 
to forge a “ social contract ” 
between the government, trade 
unions and industrial leaden. 

Mr Alderete, leader of the ' 
white-collar Power Workers’ ; 
Union, was nominated by Presi- 
dent Alfonsin at the weekend. 

The move is widely expected ; 
to reduce labour conflicts in an 
important electoral year for the 
Government by undermining a 1 
more militant and confronts- 1 
ttonist sector of the General 
Confederation of Workers i 
(CGT) led by Hr Saul Ubaldini. 1 
who has organised eight i 
general strikes against Presi- 1 
dent Alfontin's economic ] 
potides. 


Reagan resists the big stick in punishing Japanese 

BY LOUISE KEHOE IN SAN FRANCISCO 


PRESIDENT REAGAN’S deci- 
sion to impose $300m (£l87J5m) 
in punitive import tariffs on 
Japanese electronics goods rep- 
resents a compromise between 
the strong action sought by the 
US seminconductor industry and 
Congress, and concerns that any 


SEMICONDUCTOR PACT SURVIVES DESPITE US SANCTIONS 


BY OUR SAN FRANCISCO CORRESPONDENT 


trade sanctions against Japan 
might spark a trade war, US 
analysts believe. 

"The President has chosen to 
use a scalpel rather than a 
sledge hammer to attack the 
problem,” noted one industry 
observer. 

For US chip makers, the Pre- 
sident's announcement on Fri- 
day ended months of frustration 
over the apparent unwillingness 
or inability of the Japanese 
Government to force Japanese 
semicondtor producers to ad- 
here to the six-month-old 
bilateral semiconductor trade 
agreement 

A trade agreement isn’t worth 
a damn unless you have a stick 
behind it,” said Mr Charles 
Sporck, President of National 
Semiconductor. The import 
tariffs will provide that stick, 
he believes. “The Government 
muct do whatever it takes to 
make the agreement work." 

"These sanctions should pro- 
vide a reasonable incentive for 
the Japanese Government and 
industry to comply with the 
trade agreement," commented 
Mr Andrew Procassmi, presi- 
dent of the Semiconductor In- 
dustry Association, a trade 
group representing US pro- 
ducers. "The Japanese have 
had ample time to comply with 
the agreement's terms.” 

Since the trade agreement 
was signed last September, 
Japanese companies have con- 
tinued to sell semiconductor 
products below the cost of nuuxe- 


THE US trade sanctions 
against Japanese electronics 
goods come after seven 
months of disputes and nego- 
tiations over implementation 
of a bilateral semiconductor 
trade agreement rescued last 
July and signed in Septem- 
ber. 

Retaliating for apparent 
violations of the trade pact, 
the president used his powers 
under section 301 to impose, 
unilaterally, import tariffs on 
Japanese goods. This action 
does not void the trade agree- 


factors and US groups have 
gained no increase In access to 
the Japanese market, Mr Pn>- 
said. 

"We are pleased that the 
President has recognised the 
urgency of this situation, and 
the necessity of taking strong 
action now.” 

Others felt that the Govern- 
ment's action was not strong 
enough. The tariffs "could have 
been tougher,” said Mr Robert 
Matsui, a California democratic 
Congressman, Japanese electro- 
nics sales in the US totalled 
more than S23bn last year, he 
noted. “ Here we are taking 
9300m. To the Japanese It may 
well end up being worth the 
cost.” 

Mr Pete Domenld. a Republi- 
can Senator of New Mexico, 
agreed. " Tm even sceptical 
whether this Is enough. There 
are certain ruela of fairness, 
and when a country violates 
them it deserves to be 
punished,” ho said. 


meat, according te the US 
administration. Indeed, US 
officials see the action as a 
m«n»« of forcing Japanese 
compliance with the pact. 

The tariffs are designed to 
compensate the US for busi- 
ness lost through Japanese 
violations, US trade officials 
said. The Administration cal- 
culates these losses at 8300m 
although industry estimates 
run as high as Slim. 

The trade sanctions win be 
lifted If and When Japan 
opens Its senrieoBdnctinr mar- 


“The Administration had to 
demonstrate that it is tough 
on this trade issue.” said Mr 
Michael Boas, an industry 
analyst. "But they are trying 
to do so aa innocuously as 
possible." 

For the US subsidiaries of 
Japanese companies that rely 
upon Imports from Japan, the 
tariffs did not however, appear 
Innocuous. Executives of these 
companies were convinced that 
sanctions could somehow be 
averted by the Japanese Govern- 
ment and were shocked by 
President Reagan’s announce- 
menL 

The real impact of the trade 
sanctions will be difficult to 
assess until a decision is made 
on which products are to be 
affected. On Friday, the Com- 
merce Department published a 
long list of potential Japanese 
products that could become sub- 
ject to import tariffs of 19 to 
100 per cent Some items will 


fcet and stops dumpi ng in 
third-country markets* Presi- 
dent Reagan said- . _ 

Under the terms « the 
agreement Japan agreed to 
open m market to foreign 
semiconductor producers and 
prevent dumping of Japanese 
memory chip? net only in the 
US, but in worldwide markets. 

In return, the US sus- 
pended three major trade 
writs— two out charged 
Japanese groups with dump- 
ing memory chips, and a 
brooder trade c om plai nt 


be selected from that list fol- 
lowing a public hearing on 
April 18. - 

According to Mr Clayton 
Teutter. US Trade Representa- 
tive, products will ; be chosen 
fhaf ore widely available from 
alternative American or foreign 
sources to minimise the impact 
on US consumers. 

US electronics companies 
which sell Japanese-made pro- 
ducts could however be bit 
hard by the tariffs. Examples 
include retailers and American 
electronics groups which sell 
Japanese televisions under their 
brand names. 

Also threatened by the 
sanctions are US sellers of 
Japanese computers. One is 
National Semiconductor, whose 
national advanced systems div- 
ision sells Hitachi mainframe 
computers. Ironically, Mr 
Sporck, has been a strong 
advocate of the semiconductor 
trade agreement 


«*«yfnfr the Japanese with 
unfair trade practices 
Over the past dx months, 
US damping of Japanese 
chips has been eliminated by 
US Commence Department 
regulation of prices. Outside 
the US and Japan, particu- 
larly in Ari«i ma r k et s such 
as Hong Kong, Kara' and 
Taiwan, dumping of Japanese 
memory chips has continu ed, 
according to Commerce De- 
partment studies and date 
provided by the US semi- 
conductor industry. 

US electronics companies* 
reactions to the announcement 
were muted. “ We would prefer 
that the US Government would 
not have to engage in this type 
of activity," said a spokesman 
for Hewlett Packard. "At the 
same time we think that it is 
important that the Japanese 
Government understands our 
resolve to address this prob- 
lem.” 

The could benefit US 

computer and electronics equip- 
ment producers if their 
Japanese competitors' products 
were effectively excluded from 
the US market. But few would 
wish to be seen applauding 
market restrictions. 

Whether the tariffs win 
produce the desired effect and 
force the Japanese to comply 
with the semiconductor trade 
agreement is also open to 
question. “We are hopeful that 
the Japanese Government and 
Industry will move quickly to 


full compliance with the a greg 
ment." said the Semiconductor 
Industry Association. 

privately, US semiconductor 
executives are growing incraa* 
indy concerned that it may not 
be possible for the Japa nese 
Government to force full com- 
pliance with riie agreement 
Despite several strong warni ngs 
by the Japanese Ministry of 
International Trade and Indus- 
try. US price monitoring has 
detected widespread c on tin u in g 
dumping of Japanese memory 
chips in Hong Kong and Tai- 
wan. 

If the US tariffs prove 
enough of a threat to Japanese 1 
electronics companies to per- ; 
suade them to adhere to the 
trade pact however, a world- , 
wide increase in chip - prices j 
will follow, analysts predict. 
Until now the full impact of 
the trade agreement has been 
diminished by the availability 
of low-cost chips in Asia and 
the diversion of chips bound 
for the US through Canada, 
Mexico and other American 
countries to avoid US govern- 
ment scrutiny. 

There is some speculation in j 
the US that the President’s , 
announcement' of tariffs is 
really only, another “ warning 
shot" designed to gain 
Japanese attention and that the 
Japanese might win an eleventh 
hour ■ reprieve.' . Although US 
trade officials said on Friday 
that they expect Japan to be 
able to. take any action that 
could avert .tariffs, Mr Yeutter 
indicated at the White House 

^Hmnnnrflnipnf tha t 1 g decision 

was stffl to be reached on glfiSm 
worth of tariffs wbhh represent 
compensation to the US for lade 
of promised access to the 
Japanese market 


TV preachers’ lavish lives laid bare as 6 Satan has a field day’ 


BY LIONEL BARBER AND NANCY DUNNE IN WASHINGTON 


"SATAN HAS had a field day.” 
declared the Rev Jerry 
Falweli, preacher, politician, 
and putative saviour of PTL, 
the creaking Pentecostal 
ministry in Fort Mill, South 

flamlfnn 

The sex and blackmail scan- 
dal which has propelled Rev 
Falweli to the leadership of 
PTL— the acronym for People 
That Love or Praise The Lord 
— is as lurid aa any cheap 
paperback script 

But beyond the arresting 
detail, the scandal has given 
the American public a rare 
insight into the fund-raising 
tactics and lavish life-styles of 
preachers who each week beam 
messages of salvation to. an 


estimated 6m followers — the 
so-called television evangelists. 

It has touched a raw nerve 
among the nation's conserva- 
tives. Are the TV evangelists 
practising what they preach 
and what of the Presidential 
aspirations of Rev Marion Pat 
Robertson, the standard- 
bearer of the religious right 
who can count on at least &8 
per cent of votes In the Repub- 
lican Party, making him a 
potential power-broker at the 
1988 convention? 

On the surface, the fend be- 
tween the fundamentalists be- 
gan when Rev James Bakker, 
the baby-faced founder of PTL 
resigned, having confessed to 
adultery seven years ago and 


paying $115,000 to cover np 

hig ginK- 

He handed over his job as 
chairman of the board to Rev 
Falweli, and promptly accused 
a rival minister from Baton 
Rouge, IdMisiana. Rev Jimmy 
Swaggart, of leaking the story 
and attempting a hostile take- 
over of PTL, 

The corporate language is 
entirely appropriate because 
the subsequent mud-slinging 
comes down less to theology 
than to the root of aU evil: 
money. 

Xu the US, religion often 
comes close to being bought 
and sold like any other super- 
market commodity. PTL— with 
its religious amusement park. 


500-room hotel, convention 
centre and TV studio, is no ex- 
ception. But as with airy, busi- 
ness, it has to operate in a 
'market 

While the number of TV 
evangelists is still rising, the 
total market is close to satur- 
ation. Tightening demand 
among the 4040m adults who 
watch TV evangelists has been 
matched by increasingly high 
overbeads, notably the costs of 
regular TV time. 

As Rev Falweli conceded: 
"There are a finite number of 
persons who can underwrite 
these ministries." 

Yet, some ministers — - like 
some figures on Wall Street — 
thought they had never had it 


so good. Rev Oral Roberts of. 
Tulsa, Oklahoma, having started 
work os a 60-storey City of 
Faith Hospital — - recently 
threatened to die -If he failed 
to raise $8m by April L He 
had to be bailed out by a dog- 
track owner. 

Rev Swaggart — who gath- 
ered an audience of 13,000 is 
Los Angeles sports stadium on 
Friday — — iwinriiitpiir attacked 
Rev Roberts on the grounds 
that God is not a "hit man.” 
In retrospect, this can be seen 
as the start of his clean-up 
campaign, with PTL next <m 
the list. 

All this is very worrying to. 
Rev Pat Robertson, who. has 
already begun campaigning in 


New Hampshire, one of the key 
primary races In next year's 
Presidential race. 

- ThonghJse has still to declare 
his candidacy, Rev Robertson’s 
followers hove already bur- 
rowed into two state caucuses, 
picking up 40 per cent of 
pledges among Republican 
voters in South Carolina and 
50 per cent in Michigan. 

Rev FalweH — who looked 
at times more like a corporate 
troubleshooter than a funda- 
mentalist preacher last week — 
is meanwhile conce n trating on 
ti ghtenin g up his ministry/ 
business. A $5Qm loan — from 
an unknown donor — may be 
on the way. 


S African 
minister 
found 
shot dead 

By jbn Jon« In Johann**®* ; 

MR JOHTT WILEY, South 
Africa’s Environment ICnister,/ 
was ftwnd shot dead gtte bed- 
room of his home at Nooronoek 4 

Jear Cape Town yesterday 
morning. Notice said foul play: 
was not suspected. . . ; 

Apart from his ministerial . 
responsibilities, Mr Wiley has 
for several years been person- - 
ally involved in property- _ 
development projects m . me 
peninsula. Over the last .two , 
yeara the Cape property market: , 
has been quite depressed. • 

Cape conservatiowsts and 
environmental groups hare,: 
been critical of his tw^of. 
ministerial powers to authorise : 
prop er t y development protects . 
in areas of outstanding patuteX:' 
beauty' and environmentally 
fragile areas. ■. 

- Nomination day forth* May .- 
9 white election is on Tuesday ? " 
March 31 and the ruBng 
National Party j» faced -wi& 
finding an alternative c andida t e-. - 
to contest the Simonstown seat - 
held tor Hr Wiley. Cape poB^~ 
deal analysts believe that Mr 
Wiley, who was one ttf two ■ 
white non- Afrikaners intfce - 
Cabinet, faced, a strong cfcaK 
lenge from M* John Scott. tf*e- 
moderate Progressive Federal ' 
Party’s candidate for the- seat -n 

-va... 

Shamir re-elected 

Mr Yitzhak Shamir, the Israeli 
Prime' Minister, was, as «s>L ^ 
ported, yesterday unanimously: 
re-elected as chairman o£ tee* ■ 
Herat Party, the main compon- 
ent pf the right-wing Likud 
bloc, Andrew Whitley writes *. 
from Jerusalem. Yesterday,- at: 
the Tel Aviv exhibition grounds, :/ 
Herat Party delegates were - 
1 dearly trying hard to be an ; 
j their best behaviour, miration 
[of the universal opprobhan 
they earned last year when v ; 
fighting broke out repeatedly on 
both the platform and the am- '• 
vention floor. 1 " ' 

Israels in grin battle 1 

Five Xsraeft soldier* 1 'were-- 1 ." 
wounded and three unknown 
Btmnxen died durkus a- sham 
firtfight in southern Xebanop 
on Saturday evening, Andrew 
WbM.ey reports. The engage* : 
ment reportedly happened dor- . - 
ing a search operation by belj- - 
copter-borne Israeli troops, just 
outside Israel's setf-protfsimed 
"security zone” in Lebanon. 

An army spokesman In Jem- ‘I 
salem sasd toe gunmen were 
killed when Israeli troops 
clashed with a terrorist squad 
five miles north of the border. 


AT&T and Philips Telecommunications 


CAN YOU BELIEVE 
A COMPANY OUR SIZE 

WAS BORN IN 1984? 


AT&T and Philips Telecom- 
munications was formed in 
1984 by the merger of two 
companies who have always 
been in the forefront of 
telecommunications and 
advanced electronics tech- 
nology. 

AT&T previously traded 
under the name The Bell 
System, which was establish- 
ed within years of Alexander 
Graham Bell inventing the 
telephone in 1876. From there 
AT&T grew to become the 
largest telecommunications 
company in the world, and 
until recently was the leading 
telephone system of the 
USA. Today, AT&T has still the 


most advanced telecommu- 
nications network in the 
world serving with local com- 
panies the needs of over 
90 million subscribers. 

Philips is Europe’s largest 
electronics company, 
manufacturing a wide range 
of professional and consumer 
products and components. 
Even so, it is no strangerto the 
world of telecommunica- 4 
tions.lt was one of the first 1 
to develop a public telephone 
exchange with solid state 
cross-points, a break- 
through at the time.^^^1 

name Philips is AKtKKKM 
synonymous with innovation 


in the field of optical trans- 
mission systems and optical 
fibre development 
Two areas that hold the key 
to the future of mass com- 
munications technology in the 
world of tomprrow. 

The merger brought 
together AT&Ts advanced A 
telecommunications tech- I 
nology and Philips' un- ij 
paralleled electronics j|H 
capability, market-^^^J 
ing skills and^^^^^HH 
interna- 
tional 


connections to form the 
world’s most advanced tele- 1 
communications company. 

A company that 
possesses all the necessary \ 
know-how and experience 
act as your ideal 
partner in plan- 
^^^Hkning, con- 

structing 

^^^^HHprarKfservic~' 
^^HHBf^ing the most 

^■Head- 

(P^Bp^vanced 

|1 ^ telecom - 
W munication net- 
f works anywhere 
in the world. 


i 


AT&T AND PHILIPS TELECOMMU 


AT&T and Philips Telecom- 
munications B.V. 

J. v.d. Heydenstraat 38, ■ 

RO. Boxll68,1200 BD Hilver- 
sum, The Netherlands. 

Telephone: +31 35 87 31 11. 
Telex: 43894. 

TOUR CONNECTION WITH 




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Financial Times ^Monday. March 30 1987 

Poland and US 

near agreement 

on joint venture 

BT MEIER UpNTAflNOII, WORLD TOADS EDITOR. W LONDON 

¥\T a \m ■ "* _ . " 


Fame thrust 
on Italian 
woman 


J* :■» *P««te effort to boost its 
“eo^n^ft^todastes trade fee Midi Goveramentisnow 

.s^fflgfgssas ss&^ssuac 


htdd part of the proceeds of tisear 


* « ■ _ nujUk. IUI- 

e^gn Trade Ministe r, 

- 33»: joint venture would be fee 
i®g^to,be -signed up since, new 


jj^B^to-be signed updncenew . Tl^idea was to allow them to use 

opera- die money to boy equipment and 
ttoTOS_f«6sedto ^ material from abroad rattier than 

amen he said m a fatten process of obtmnim* the oecessa*. 

v^wdnctog a wsft to London , ;• foreign cnrre^fi^lte^S 

Final agreer«i4_ on the (teal Government he said. cenw “ 

iffiSSS&SSb'w** help to increase the 

lomt ventnne scheme winch is re- efficiency and 

garded esa impmtantptenkinFo- porting iwdw^T ya ^ f!!^-^ i**h“ 

toto«^iwta^eoa^ ded^ economy with additianalSSsS 

So faranly couple of Western most of toe goods wouHheftSwS 
co mp a n ie s hare signed np tor joint anyway. 60005 would be bought 

ventaM amid concern over the ComnientinE on the rival hid* W 

■*» a * 7Wm contractto Se 
pa atomn AW amatfor^staka PoWs motor car indnsfeTtte 

JMsasaa asaasaKRtis 

Ferranti makes rival 
fighter radar offer 


BY DAVID BUCHAN M LONDON 

raiURANn OP the UK is offer- 
mg a derivative of its Bine 
vixen radar as a cheaper alter* 
native to development of the 
VCR-90 which fte group is 
offering, in an all-European con* 
soitium, for the European 
Fighter Aircraft (Efa). 

Ferranti admitted on Friday 
feat the Blue Vixen derivative 
currently being tested for Royal 
Navy. Sea Harrier aircraft, was 
*wt compliant with the fuD 
Specifications" for the new Efa 
radar demanded toy the Munich- 
baaed Eurofighter organisation. 
This is a consortium formed by 


the four countries building the 
Efa — Britain, Vest Germany. 
Italy and Spain. 

Ferranti has submitted the 
Blue Vixen bid for considera- 
tion, Should the countries in the 
Efa programme opt for a less 
capable but cheaper and more 
immediately available radar. 

However, Ferranti stressed 
that the Blue Vixen alternative 
had been proposed with the full 
knowledge of its partners— Fiat 
of Italy, AEG of West Germany 
and Inisel of Spain — in the 
VCR-90 consortium bid. 


France plans attack on 
electronic sex industry 


BY GEORGE GRAHAM M PARIS 

AFTER A first abortive assault on 
pornographic magazines, France's ; 
right-wing Government is mount- 
ing an Mtock on the country’s ex- 
panding ggg industry. 

Mr Gerard Longnet, the Minister . 1 
for Posts and i yiwwiwn «n niH>ti ( ^ •' 
faty announced measures aimed at 
cptting back the erotic message ser- 
vices which hove colonised France's . 
Minitri videotsxt netwo rk an d ac- 
count far a growing proportion of ] 
Miniteluse. i 

Mr Longuet pkns to remodel the ; 
charges fox Btoitd pages in ardec ] 
to reduce the activity of tbe erotic -\ 
message sovices, known as "feink ' i 
MiniteT. The numster said feat tiie i 
excessive profits of those services 
were revealed by their excessive ] 
advertising. ^ 

His colleague, Mr Charies Pas- ] 
qua. Minister of the! Interior, last ] 
week tried to damp down mi a ' 
number of gay and pornographic i 
magazines. But had to retreat fid- 1 
lowing a storm of protest against i 
Ms attempt at censorship. i 


European Court rides 
on Dutch VAT case 


BY LAURA RAUH IN AMSTERDAM 


THE EUROPEAN Court has ruled 
«ipf fhe Netherlands must collect 
Value-Added Tax (VAT) on the ser- 

? .f ■ ■ inwiiia 1.11 ■■Urn otw 4 clwmfPa 


Court is to deliver that decision in 


officers in a dedawi that has not 


The Dutch argued test notaries 
public, rmeera who certify dOCUr 
rumrts, and sheriff's officers, who 
serve -warrants, are- government 
» pwfc »nd therefore ez emp t from 
value-added taxes. But tee Euro- 
pesn Commugfon contended in a 
suit lodged in 1885 teat the y are pri- 
vate professionals who per form 
commercial services and are tens 
to taxation. 

The court case is based on the 
SECTS 8te VAT directive of 1977 
which sought to h armnn i aH tee 
moducte and services on which 
t«gpg are levied and exempted. Tte 


The Neteeriands has never re- 
quired notaries pubfic and sheriffs 
officers to charge VAT an tear ser- 
vices »nd is in no hurry to do so 
even though it has no legal recourse 
to the Luxembourg court’s dedston. 
Joint discussons between the Fi- 
nance . Ministry, Justice Minis try 
and Royal Notaries Bond will be 
held In coining months" to consid- 
er a new interpretation of Dutch 
tow to conform with the court tul- 


The Dutch VAT rate is a relative- 
ly steep 20 per cent and taxes on 
the services of notaries public and 
sheriff’s officers apparently will 
wTTMtmrt in "several tens of millions 
of gaDders," tee mndstry spokes- 
man said. What is^ almost certain is 


ariSSar suit against Britain over along to tee alrea^rbeteagrad 
«s zero-tax ratfaig of fee construe- recipients of arrest warrants and 
tten industry and the European notaries' fees. 






■y l®bn Wylcs b Rotne 

ACHAFTY ikUbttn by 
Indian Frestdetit Francesco 
uKsigi has transfermed Mbs 
Jfflde Iota over the weekend 
fotetfttot, bat respected 
figwe into a symbol 
of fe adaht hopes and Com- 
inmUal Pasty aephrMfims. 


: The Minihd system began as an 
el ectrmnc telephone book, and <fi- 
rectmy -enquxnea-sttll account for 
more than half the cads. France’s 
tetecomimmicationa c ompan y wfll 
provide a free tertwfaql - a fittie 
brown box wife a screen and a key- 
board - to any telephone subsoib- 
er, white h— hrtped to spread tee 
network into more than 2m homes. 

Three additional networks have 
been added to the baric telephone 
directory. Trietel 1 is mainly for 
professional use, while Tetetel 2 
provides su b s crip tion services — 
usage is free apart from fee baric 
telephone cost- used eapedaBy for 
ekebontehomehankn®. 

Tfeletel 3 carts fee user needy 
FFr l (lfi US cents) a min u te, of 
white the telephone com pany 
keeps 37J5 per cent and fee rest is 
passed on to tee service soppHer. 
This network, which includes news 
services, couqmter games as well as 
fee erotic messages, las racketed 
since itecreatibain September 1985 
ami now counts over L000 services. 


OVERSEAS NEWS ^ 

Greece and Turkey are bedevilled by an age-old hostility, Robert Mauthner writes 

Fresh sparks in the Aegean powder keg 


fee Camoa-Hhe lower house 
w t he Italian pariiament— Is 
^ported to report back to rite 
Resident by oUweek on 
any government am 
command a majority in the 
Present legislature. If, as ex- 
Perted, she cannot identity a 

majority, then the President 
.*«M feel free to dissolve 
Pjraament and bring forward 
elections due in June 1988. 

Mtes lotti Is wot being 
»ed to form a gwamin tt 

herself but, as am iaflitttatienal 
ffgure * above party,” to cm 
*nlt party leaden on whether 
an alternative exists to the 
ra-party coalition led by Mr 
Betttno Craxi, the outgoing 
soehdlst Prime Minister. ^ 
week's failure by Mr Gfulio 
Andreeftl, the Christian 
Democret leader, to conjure 
agrement on a new govern- 
ment appears to have spelled 
the end of the five-party com- 
bination white has govereaed 
Italy Since 2982. 

In the meantime, fhe 
shrewdness of the President's 
appointment of this elegant, 
greying woman as 
esplora trice Is befog steadily 
appreciated. Women are 
highly under represented in 
Kalian polities and associat- 
ing one la the attempt to re- 
solve me of tile country's 
most difficult political crises 
has been widely Mri«tw««i 
fay feminist leaders. 

Bat Hiss lotti symbolises 
more than one cause because 
she is also part of the Com- 
munist Party's (PCD leader- 
ship. 

Her brief new role Is al- 
lowing the PCI to dream that 
it ** nn again play U influen- 
tial part in leading Italy out 
of a political Impasse. Mr 
Alessandro Natta, the party's 
leader, will be trying hard to 
convince Miss lotti that there 
is a parliamentary majority 
among those parties in the 
centre and on the left white 
want to avoid early elections 
and tints gnaimtee the hold- 
.tog of referendoums on 
June 14 on nuclear energy 
and judicial reform. Elections 
ami refcrendums cannot take 
place in the same year - 

Polish prices raised * j 

The Polish G overnme nt 
yesterday raised food and 
energy prices and said postal 
charges, fores and the price 
of meat would rise later. 
Agencies report. A com- 
munique said pressure from 
o fficial trades ™<w«t bad 
limited food price rises to 9 Jt 
per cent against tee 11 
per emit planned. Charges 
for petrol, gas and electricity 
wfll Increase by 25 per cent 
and tor coal by SO per cat 

Ariane suffers 
further setback 
during testing 

By Our Paris Staff 

ABIANB , fee E ur o p e a n —fcJBh j 
hun c hing rocket, ibas suffered 
another setback white may delay 
jh again ns sen uun- a i p wmen 
had been planned far June. 

An du r ing testing of 

fee racket's third stags motor 1 
has forced fee Ariane group to 
start a^dn wife tests on a new i 
motor. Hk next tarate is still of- 
ficially scheduled for June, but i 
o bs er v er s bdtave fee three i 
weeks of tests, t rans port to fee 
branch site in French Guyana 
rod erection el tee rocket wffl be I 
impossible to achieve in that i 

/fw io 

The Ariane racket has been 
grounded shire a third stage mo- 
tor foiled to ignite at its last 
branch in May last year. A wave 
of i— to HWdfii «n tiw 
competing inimflmf 

programmes, and raised fee pat- 
entfol prira money for (he test to 

return go a —w” 1 tey**" 1 of 

FINANCIAL TIMES 
PobBshad for Xto Fbundal Thw 
(Emope) im, Frankfort Branch, 
nqmcnnted by B. Hugo, Tnmkbat/ 
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THE CLASH between Greece 
and Toteey over oil-drilling 
rights in tee Aegean, wlute led 
fee two countries to the brink 
of military conflict over the 
weekend, is only the latest of a 
series of longstanding terri- 
torial disagreements white 
have their roots in the break-up 
of the Ottoman Empire. 

A ran so political climate, 
fuelled by the Turkish invasion 
of Cyprus in 1974, the uni- 
lateral declaration of the self- 
styled Turkish Republic of 
1 Northern Cyrpus in 1988 and 
Greece's firm opposition to 
Turkey's declared intention to 
become a member of the Euro- 
pean Community, lias under- 
mined any attempts to find 
agreed solutions. 

The legal and technical argu- 
ments deployed by both sides 
have merely become pretexts 
for fostering a permanent 
i atmosphere of hostility which 
can be transformed into a con- 
flagration by tee merest spark. 

Quite apart from tee argu- 
ments about the continental 
shelf and territorial waters, 
Ankara and Athens are locked 
into constant disputes over air 
space and the militarisation of 
Greek islands -in the Aegean. 

When one quarrel is tempo- 
rarily defused, it is transferred 
to another issue, making It 
i clear that only a fundamental 
solution of the major bilateral 
political problems such as 
Cyprus can hope to bring any 
permanent improvement in the 
atmosphere. 

The discovery of oil In tee 
Aegean since the 1970s has 
added yet another dimension 
to the problem. 

The immediate cause of the 
latest flare-up is a difference 
over the validity of the Berne 
Agreement of 1976, white was 
concluded by the two countries 
as a way of putting an end to 
a previous conflict over oil 
exploration activities. 

The Berne Agreement clearly 
states that “Athens and Ankara 
undertake to abstain from any 


Contested 
drilling site 


Aegean A See 

is>*“ . ’ ^ 




s* AHUM <>_ m 


initiative or act relating to the 
continental shelf of tee Aegean 
Sea white might prejudice nego- 
tiations.*' 

Such discussions on the de- 
limitation of the continental 
shelf did start but were broken 
off in 1981 — by tee Turks, ac- 
cording to Athens, by Mr 
Andreas Papandreou, the Greek 
Prime Minister, after fhe elec- 
tion of his Socialist government 
in tee same year, according to 
Ankara. As a result, say the 
Greeks, the Berne Agreement is 
no longer operative. 

This interpretation has been 
used by the Greeks as a justi- 
fication for their resumption of 
oil-drilling and exploration in 
the North Aegean in what they 
consider to be their own terri- 
torial waters and on their own 
continental shell 

The North Aegean Petroleum 
Company (NAPC), a Canadian- 
led international consortium, 
has been producing about 


v 

ummi9 * 


27,000 barrels a day, most of 
it sold to the Greek state, from 
the Prinos oilfield, west of 
Thassos, off fee northern Greek 
coast 

Its plans to pro sp ect east of 
the same Island, nearer the 
Turkish coast set off a series 
of events white, typically, were 
interpreted completely differ- 
ently by Athens and Ankara. 

The Greek Government, 
claiming it was concerned 
about tee company's activities 
in such a sensitive region for 
Greek-Torkish relations, over 
white it wanted to have a veto, 
tabled a bill which would give 
it a majority stake in NAPC. 

The Turks, on the other 
hand, saw fee move as an 
escalation of the dispute over 
drilling rights because national- 
isation would give the company 
the official backing of the 
Greek Government for its 
activities. 

Not unnaturally, the company 


Turkey wiS formally apply 
for membership of the 
European Community in the 
next few weeks, ha spite of 
widespread diplomatic pres- 
sure to daigy fee move, writes 
Quentin Peel from Brussels. 

Confirmation that Turkey 
would press ahead with its 
appllestle® was given on 
Saturday by Professor All 
Boxer, the Turkish unni^w 
of State for EEC Affairs, to 
Mr Claude Ctoynen, the 
European Commissioner res- 
ponsible. 

Today the Turkish m foinfar 
is to meet Mr Leo Ttademans, 
the Belgian Foreign Minister 
currently president of the 
EEC Council of Ministers, at 
the start iff a tour of Com- 
munity capitals to deliver his 
message. 

However, a pbnt to fnebuie 
Athens hi the trip has been 
cancelled after the invitation 


also protested vigorously and 
said it would go ahead with its 
planned drilling east of Thasos 
regardless. 

It was only persuaded to 
change its mind after tee 
sabre-rattling over the past few 
days and the despatch to tee 
area of tee Turkish oil research 
vessel Sismlk-1, escorted ter an 
impressive array of warships. 

Behind the dispute kies 
Turkey's deeply-felt dissatis- 
faction with the existing situ- 
ation the result of its defeat 
in World War I — in which it 
is hemmed in by a long fine 
of Greek islands just off its 
coast-line. 

Greece eialma that tee 
estimated 3,000 islands of the 
Aegean, all but a small handful 
of which are Greek, have their 
own continental shelves and 
that thin is enshrined in the 
Geneva Convention iff 1958 and 
the Law of tee Sea. 


W» recently withdrawn. Prof 
Boxer said. 

Turkeys formal letter has 
to he submitted to fee cur- 
rent president of the EEC 
Council of Ministers, a posi- 
tion held fay Belgium until 
Jane. After the application 
has been acknowledged by 
the member states, ft to 
passed on to the European 
Commission for its epfoton, 
a process likely to take U 
months or more. 

If relations between the 
two countries do not improve, 
Turkey's application seems 
doomed to founder on a 
Greek veto, whatever the 
attitude of other member 
states. 

A negative op team from 

the European Comm is s i on is 
nnUkrty to be tee last word. 
The Commission also gave a 
negative opinion on Greek 
membership, bat was over- 
ruled by member states. 


The Greeks also claim that 
they are entitled by inter- 
national law to extend their 
territorial limits from 6 to 22 
miles, but have not, so far, 
attempted to apply this rule. 

Ankara refuses to accept that 
the islands near its coast have 
their own continental shelf and 
have not signed the inter- 
national conventions which 
Athens has invoked in support 
of its claims. 

Recourse to the International 
Court in The Hague, as the 
Greeks have proposed, has been 
rejected by Ankara because of 
disagreement over the legal 
basis on which the submission 
should be made. 

It seems highly unlikely. In 
any case, that a purely legal 
judgment could satisfactorily 
solve what is essentially a 
highly complicated political 
problem between two countries 
which have never been able to 
overcome their age-old hostility. 


At the End of the Day, 


Turn to The Journal? 


'0ISSS 


■utna Knew utfNiK ft 


Fat Cats of Venice 

Find the Good Life 

In Sleep and Soup 
* * * 

Mice Are No Longer a Thrill 
For City’s 300,000 Felines 
Too Lazy to Chase Them 


| By Laura Colby 

gj Staff Reporter o/ T he Wall Street Journal 1 

K VENICE -They are everywhere in Ven- 
p ice. 

ffi They gather in gangs in the alleys behind | 

m the Piazza San Marco and rummage; 
g through the garbage of the city's best 
p restaurants. They snuggle together in the 
p folds of Vittorio Emmanuele U’s bronze 
statue on the Riva degli Schiavoni. They 
h scale the walls of patrician palazzi, padding 
1 deftly around the shards of glass embedded 
| on top to keep them away. i 

1 And they sprawl in the winter sunlight on 

| the Strada Nuova, within a paw’s reach of , 
1 Roberto Guadagnin’s fish stand. 

| “Cats!” Mr. Guadagnin cries, bis | 
gj weather-scarred face turning an even | 
I brighter shade of red as he waves his hand 
§ toward the contented-looking bunch. “Now- 
adays, they wouldn’t even bat an eye at a 
|| mouse. Their bellies are too full." 

| He shakes his head in mock disgust. “Do 
i you know that I have customers who buy 
1 fish and take it home and cook it," he says, 


After a morning session, 
many readers choose to 
peruse it later at leisure. 

Barbie dolls. The Swiss Navy. The 
Dutch manure glut The fat cats of Venice. 

In the world of international business 
reporting, The TVhll Street JoumaJ/Europe 
has a reputation for leaving no stone 
unturned. 

And when we uncover stories as 
colourful and unusual as these, there’s 
only one place for them. 

Page 1, column 4. 

Of course the tales of the unexpected 
you’ll find here rarely have much to do 
with the price of oil in Kuwait or the value 
of the yen in London. 

Which is precisely why you’ll enjoy 
them so much. 

And which is why at the end of the 
day The Journal is never amply required 
reading. 

It is desired reading. 

THE WALL STREET JOURNAL. 

HJB0PE 


I 




Taiwan 
to lift 
currency 
controls 

By Robert King to Taipei 

TAIWAN'S Cabinet has decided 
to remove strict foreign ex- 
change controls in a further 
stage of a reforms package, but 
it will be some time before the 
scope of the measure is evi- 
dent 

Ur Yu Kno-hwa, the Prime 
Minister, on Saturday broke 
what many observers saw as a 
deadlock between the central 
bank; which some weeks ago 
proposed radical revisions of 
foreign exchange laws, and con- 
servatives within the Cabinet 
who fear a massive outflow of 
Capital. 

Mr Yu, while not setting a 
timetable for the reform, said 
that the Government should 
“ suspend the controls at a time 
when the trade surplus is too 
high,” while retaining die legal 
basis for the controls only for 
“use in an emergency." 

The Prime Minister author- 
ised the move in an attempt to 
reduce the country’s huge 
foreign exchange reserves, now 
at a record $53ba (£33.1i>n) and 
ease pressure on the local 
money supply which grew by 50 
per cent last month. 

The move would also slow the 
rise of the new Taiwan dollar, 
which, at Saturday’s close, 
stood at 34-23 to one US dollar, 
almost 15 per cent higher than 
a year ago. Some observers 
consider that the currency 
could go as high as 28 to the 
US dollar but traders and manu- 
facturers fear their export- 
oriented business would be bit 
badly by even 32 to one. 

Conservatives within the 
Government have argued that 
reserves would be needed for 
defence in the event of an 
attack by China— apparently 
the "emergency" Mr Yu re- 
ferred to— although moat ob- 
servers agree the chance of 
such an attack in the near 
future is remote. 

Critics of the Government’s 
authority point out that a 
thriving black market, to which 
the Government has tamed a 
blind eye for years, can move 
vast amounts of foreign ex- 
change abroad with just a 
phone call. 

Mr Yu predicted that the re- 
forms would not reduce the 
foreign exchange reserves in 
the short term, but would aid 
long-term liberalisation. Finance 
Ministry and central bank will 
have to produce regulations 
before the reforms can be en- 
acted. 


Leading Malaysian party 


Blnandal Times Monday March SO -1987- 

OVERSEAS NEWS . 

i nartv hesitates over expansion into Sabah 


Saalh OHta 
| MALAYSIA i 


SAfiM 



INDONESIA 



THE Supreme Council of the 
United Malay National Organi- 
sation fUrnno), the dominant 
party of Malaysia's ruling coali- 
tion, on Saturday postpined a 
decision on whether to expand 
its organisation to Sabah, the 
oil- and timbeHich state on 
the northern tip of Borneo. 

The council was preoccupied 
with the April 24 Umno elec- 
tions, which will determine 
whether Dr Mahathir Mohamad 
can defeat a strong challenge 
within the party and continue 
as Malaysia’s prime minister. 
Dr Mahathir does not need yet 
another political tangle just 
now. 

"When the scrap over the 
Umno leadership is finished, 
howeveT, Umno leaders will 
have to come to grips with 
growing restiveness in Sabah 
over the state’s relationship 
with the Federal Government 
of Malaysia, an issue that has 
raised questions about the 
integration of east and west 
Malaysia. 

Sabah ana are unhappy about 
what they see as progressive 


Steven Butler, 
recently in Kota 
Kinabalu, reports on 
restiveness about 
federal-state relations 


reduction of the State’s auto- 
nomy, and perceived unequal 
treatment The gripes are not 

yet the tip of a sessnmist 

movement, but political analysts 
say this could develop if the 
complaints are not taken 
seriously in Kuala Lumpu r. 

The complaints range over 
sensitive Issues such as lan- 
guage, immigration control, and 
religion, with many unhappy 
that thi»mw hay become the 
official religion of the state 
Some do not like the fact that 
federal departments in Sabah 
are headed by p ennin snlar 
Malaysians who come with sub- 


stantial cost-of-living «**sM*« 
If fro an old-style colonial 
administrator. 

Others would like to raise the 
5 per cent royalty that the state 
government receives from local 
oil extractions. 

These complaints are sympto- 
matic of a lack of trust and 
stem from a root problem, 
which is that the political and 
social formulas designed to 
accomodate a very different 
racial and cultural mix on 
pemtinsular Malaysia do not 
work the same way In Sabah. 

Sabah’s largest ethnic group 
Is of indigenous Kadasans, not 
Malays. Many of the Ka damns 
are Christians, although there 
are a fair number of Moslems as 
welL Far more than in penin- 
sular Malaysia, English has 
been the language of public life 
—not Malay — first under the 
rule of North Borneo Company 
and later as an English crown 
colony. 

These differences were taken 
into account in a 20-point agree- 
ment made when Sabah joined 
Malaysia in 1363. 


Yet earlier this year. Dr 
Jeffrey Kttagan. ch a irman of 
the Institute of Development 
Studies (IDS) in Sabah, sent a 
letter to the Federal Govern- 
ment that questioned whether 
the 20 points had been observed 
and then examined other 
aspects of the federatetate 

relationship, tadndjQg JS&S 

interference hi state political 
affairs. 

Dr Kitingan sent the letter 
as a private citizen, hot in addi- 
tion to his professional position 
he is brother to Datnk Joseph 
psiria Kitingan, the Sabah 
Minister, and the letter 
Is unlikely to.be ignored. Tim 
r>i«rf Minister has since com- 
missioned the IDS to co nduct 
a systematic study of federal- 
state relations. 

The tension between the state 
and federal government grew 
in the combative atmospnere 
following Datuk Pairin’s rise 
to power. Datuk Pairin is a 
Christian Kadazan and his poli- 
tical party, the Parti Bersatu 
Sabah, (PBS) is sometimes per- 


Zambia reintroduces auctions of foreign exchange 


BY VICTOR MALLET IN LUSAKA 

ZAMBIA, hit by a wave of pay 
strikes from teachers, doctors 
and nurses, resumes its foreign 
exchange auctioning this week- 
end after a two-month break 
which bas seen renewed pro- 
tests against economic austerity, 
left businesses starved of vital 
imports and placed further 
strains on the country’s rela- 
tions with the International 
Monetary Fund (IMF). 

The reintroduction of the 
weekly auction, an important 
part of the stalled IMF re- 
covery programme for Zambia, 
is being welcomed by Western 
donor countries. They see it as 
a defeat for anti-DIF govern- 


ment officials who prompted the 
suspension the the auction sys- 
tem eight weeks ago, and they 
regard the modifications to the 
foreign exchange regime— In- 
cluding a new favourable rate 
for government external debt 
servicing and procurement of 
medical and educational sup- 
plies— largely as a face-saving 
device. 

But the auction of 98m on 
Saturday by no means marks 
the end of Zambia's dispute with 
the IMF, and an overall agree- 
ment still seems a long way off. 
The IMF is owed more than 
$150m by Zambia in arrears. 


and although Zambia says It 
can clear these with commer- 
cial bank bridging loans se- 
cured on the basis of an IMF 
pact, the arrears are rapidly 
approaching the level at which 
they will exceed available new 
IMF money and therefore 
scupper the bridging loans. 

Zambia is aim ftwtwg sharply 
criticised by the IMF for Its 
unwillingness to reduce its 
yawning budget deficit or place 
stricter controls on its money 
supply, while individual West- 
ern donor countries are 
exasperated by Zambia’s in- 
ability to pay even nominal 


sums to reduce arrears on soft 
loans. 

Some diplomats speculate 
that Zambia’s foreign exchange 
shortage might have been 
worsened by its recent decision 
to divert c&per exports away 
from South African ports and 
so incrpflsp me of inefficient 
ports In Tanzania and 

Mozambique. 

One way of redo dug the 
budget defied ty, favoured by 
the IMF, would be to cut food 
subsidies which were hur- 
riedly reintroduced by presi- 
dent Kenneth Kaunda last year 
to defuse widespread anti- 


Cocoa delegates hammer out rules on buffer stock 


BY DAVID BLACKWBJ. 

THE International Cocoa Org- 
anisation (1CCO) has agreed on 
the rules to govern its buffer 
stock after two weeks of nego- 
tiations in search of a compro- 
mise acceptable to consumers 
and producers. 

Delegates to the conference 
In London decided on Friday 
that the rules they had so 
patiently hamm ered out should 
take effect immediately. Cocoa 
prices are hovering around the 


lower Interventions, or “must- 
buy " price of 1,600 SDHa, 
Beiow that figure the buffer 
stock manager must defend the 
price. 

It will be two to three weeks 
before he can start buying — the 
time needed to assess the mar- 
ket and organise a communica- 
tions system. 

The International Cocoa 
Agreement was negotiated last 
July, and came into effect at 


the end of January. But the 
buffer stock, which is used to 
keep cocoa off the market and 
stabilise prices, could not 
operate because of disagree- 
ment over the rules. 

The disagreement covered 
three main points: 

• Should the buffer stock 
manager pay different prices 
for different qualities of cocoat 

• Should he buy both on the 


spot market and for forward 
delivery? 

• Should he buy only from 
members of ICCO, or also from 
notMnembera? 

The rules provide a fixed set 
of differential prices for cocoa 
from different origins; allow 
for purchases on the spot and 
forward markets and permit 
the purchase of up to 15 per 
cent of the total stock from 


ceived as catering principally 
to Christian Kadazan interests, 
even though many Kadazan 
Moslems also voted for the PBS- 
Perhaps most important is the 
perception tiiat' Sabah's 
indigenous people triumphed 
politically over external forces 
although this is grossly over- 
simplified. 

These feelings were intensi- 
fied by the violence that 
followed the first PBS electoral 
victory in 1985, and which 
lasted until new elections were 
called in 1988, when the PBS 
won a 2/3 majority control in 
the state assembly and put an 
end to doubts about its mandate 

The Umno - advance into 
Sabah was to be on the back 
of the United Sabah National 
Party (Usno), a party seen to 
represent Moslem interests and 
which was routed by the PBS 
in the polls. Umno was to help 
revitalise Uao by ta k i n g it 
over. 

The Umno entry however 
was stalled by the possibility 
that If Usao merged into Umno, 
by-elections might be triggered 


In all eight constituencies 
where Usno had seats-. Beades- 
other technical problems, there 
remains confusion over Umno s 
identity, since Umno has 
defined itself as a Malay party, 
while many Usno supporters 
are non-Malay Moslems. 

The result is that a thicket 
of thorns might greet Umno as 
it expands to Sabah, accom-; 
parted by an embarasdng: 
political failure tiiat could 
further poison federalnstate re- 
lations. Umno, however, must 
also be mindful of the conse- 
quences of success, rinca a 
strong Umno presence m Sabah 
could further fuel auapioMS. 
that Sabah has become no thin g 
but a colony of peninsular 
Malaysia. 

The political violence .in.. 
Sabah just one year ago has 
made an unsettling precedent 

Dr Richard Gunting. Execu- 
tive Director of the IDS, says 
that the questions about federal*: , 
state relations have' been raised 
in a positive spirit It remausv 
to be semi whether they will be 
received that way. ‘ 


government rioting, but Dr 
Kaunda Is in no mood to anta- 
gonise his long - suffering 
citizens any further. 

Striking teachers and medical 
staff are demanding more pay 
to cope with the soaring cost 
of living, and nurses have 
called for danger money when 
they deal with the many 
y-»m*,fans who suffer from 
AIDs. The political tempera- 
ture has been further raised by 
an incident in which a group 
of youths, thought to be mili- 
tants of the ruling party, 
assaulted nurses In Lusaka in 
a revenge attack for the strikes. 


SHIPPING REPORT 

Dry cargo rates increase 

BY KEVIN BROWN, TRANSPORT CORRESPONDENT 


DEMAND on the dry cargo 
market continued to strengthen 
last week, largely as a result 
of continued Soviet and 
RhinoM grain pu rchases. 

Denholm Comes, the London' 
shipbrokers, said the grain rate 
from the US Gulf to Japan had 
climbed to around $16.50 per 
ton, while the US Gulf/Conti-' 
nent rate was around £8.75. The 
rate from the US north Pacific 
to Japan was said to be around 
£10.75. 

Bro k ers said timecharter 
rates for Panamax vessels — the 
largest able to transit the 
Panama Canal— were between 
$7,000 and $7,700 for Atlantic 
round voyages, with as much 
as $7,000 being paid for an 
Australian round voyage. 


The market was said to be 
very active .on the Great Latov 
with several charterers fixing 7 
vessels for Lakes round voyages 
at. between $4,000 and $1200. 

In the tanker market, broken- : 
said rates had, moved ahead at.- 
few points as a- result aT De- 
creased demand from charter- 
ers. E. A. Gibson, the London 
brokers, .warned, however, that 
returns to owners were hardly/ 
improved because of increasing- 

fuel costs and the fragile US 
dollar. 

Broken sold there was . 
demand for vessels of most 
sizes in the Middle East; and 
a number of the very lane 
crude carrier (VLCCs) await- 
ing cargoes were said to have 
been fixed. 


nouneaabers. Buying win be by 
means of an offer sy ste m, as 
against a posted price system. 

The buffer stock manager's mc 
“ can-buy” rone ranges from ■ — 
1,600 to L655 SDRs. Be has in- wTi 
herited a stock of 10(M>00 uJC 
tonnes from the previous agree- Italy 
meat, and has a limit for the Bc& 
stock of 250,000 tonnes. Above Nett 
this level producer countries 
start to store cocoa rather than 
release it onto the market. • 


World Economic Indicators 


FOREIGN EXCHANGE RESERVES 
<lB$m) 


W. Germany 


Belgium 

Netherlands 


Jte«7 

DocW 

Nov.t* 

1 m.U 

. 17,90 

.. 17428 

1*465 

12411 

46493 

37457 

37419 

22409 

56411 

45466 

45492 

39,053 

154*1- 

HIM 

14497 

9434 

19AM 

HIM 

it. 106 

12404 

4957 

4*30 

4439 

3437 

. 10,199 

9,583 

10424- 

94*7 

Die. at 

NoV.M 

Oct. 86 

Dec. 45- 

28.424 

M-ro 

29,900 

24419 



Saurev 

IMP rT ~ 


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Address 





ci- 


Financial Times 
Conferences 

International Collaboration in Aerospace 

Paris, June 9 & 10 1987 

The 1987 Financial Times aerospace conference will be 
arranged in association with Air & Cosmos immediately 
preceding the International Air Show in Paris. As the cost 
and complexity of modern military and civil aerospace 
ventures rise, interna t ional collaboration in the aerospace 
industry has been expanding rapidly. This conference will 
examino the difficulties involved is ew«hii«htng major 
collaborative ventures and the benefits that such ventures 
can bring to their participants. The opening address will be 
given by Mr Jacques Benichou, President of G1FAS. Other 
speakers include Mr Jean Pierson of Airbus Industrie, Ur 
James Johnson of Boeing Commercial Airplane Company, Mr 
Ozires Silva of EMBRAER, Mr Frans Swarttouw of Fakker, 
Mr John Wragg of Rolls-Royce pic and Mr Jean SoUier of 
SNECMA. 

World Gold 

Venice, Jane 22 & 23 1987 

Dr Lamberto DlnL Dr Chris Stals and Lord Cbalfont are three 
of the speakers featured at World Gold, one of the must 
important annual FT events. Mr Robert Guy and Mr Dennis 
Soskind are to chair and Mr Tom Main, Mr Urs Seller, Mr 
Rolf Willi and Mr Robert Caiman are among the other 
contributors on a platform of great authority. 


European Banking Conference 

Milan, May 18 & 19 1987 

This 1987 Milan conference follows an from a previous and 
highly successful forum in that City in 1984. Professor Mario 
Monti and Mr Jack Beonessy chair a platform of great 
distinction which includes On Bettlno CraxL On Giovanni 
Goria, Dr Raul Gardlni, The Rt Bon Denis Healey and Mr 
Win Bischoff. Among the speakers on the Italian financial 
scene are Dr Guido Vitale and Dr Nerfo NesL Hr John 
Goodwin, Mr Richard Lutyens and Mr Richard Lehmann are 
to cover the international markets and Mr David Suratgar and 
Mr Armen Kouyoumdjlan will speak on the debt question. 
Dr Massimo Russo and P rofes sor Alfred Steioherr are to give 
papers on the EHS and EIB. Mr Stephen Danzansky of the 
White Bouse is to examine American European relations and 
Mr Winfrled Spaeh. Mr Teruyosbi Yasufuka, Aw Mario 
d'Urso, Professor Gianni Zandano and Dr Luigi Arcnto are also 
on this year’s platform. 

All enquiries should be addressed tor 

The financial Times Conference Organisation 
Minster Bouse, Arthur Street 
London EC4R9AX 

Teh 01-621 1355 (24-lumr answering service) 
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>7 


F mann a l Times Monday March 30 1087 


Austin Rover to 
sign long-term 


UK NEWS 


Michael Cassell assesses Labour’s defence mission to the Oval Office 

Kinnock and Reagan fail to bridge the great divide 


component deals 

BYART TOB SMTTH. MIDLANDS CORRESPONDBfr 

^ *****” ■ ■*'. ™t te e which ^-inquiring into the 

riSw“T° y, te tp<te ' aadifimoftheSlS? 

3»e chief exeSTrf one of the 
? ma i° r suppliers said last nighf “R 
■WwJ redaee mcertomty an d k dHBcolt to mggende & 
jj* ; JE °°^neatemdngtry a Kance ot this Austin Rover Si- 
^Ddoii. °PP°riHnlty^ to a- gy^K the company is as good audits 

- wow -as so far it seems to be -the 


WHEN Hr Neil Kinnock. the Ls- 
hour Party leader, strode into his 
first press conference on arrival in 
the United S***pr M Thursday, he 
peremptorily dismissed suggestions 
that his planned meeting with Pres- 
ident Reagan be to 

walking Into a lion's d? 71 . 

In the first of many upbeat, confi- 
dent and relaxed performances in 
the next 38 hours, he denied claims 
that the US administration was is* 
o ea sin gly alarmed about his par- 
ty's unil a t eralist lipfrum policy. 

^ , There w as, he acknowledged, a 
divergenc e" of views, but any other 
mtfaiKcigtifln m ould underad hnaie 


1 1 », Jg gSfcj 


and its readiness to 


introduction of advanced technolo- 
gy* said Ur Andy Barr, the car 
group's managing director for oper- 


Austin Rover had cat the number 
jtt suppliers from 1^00 to 700. Of 


Austin Rover would benefit from 
the improved quality and cost re- 
ductions that would How. from such 
inv estme nt. Mr Barr also gave a 
c ommitm ent to the UK'indnstry 
t hat ft would not suffer from Austin 
Rove's confirming collaboration 
wife Honda, of Japan. 

He pointed out that fee UK con- 
tent mAnstin Rover’s pww«hw«OB Qf 
materi a l s was running at 87 per 
cent. This was worth more than 
CSQOm . “We intend to mafatefo that 
very high local content Our future 
odlaborataun wife Hnndn won’t do 
fee UK any harm.” 

Th e Austin Rover initiative win 
certainly be welcomed by an indus- 
try feat has slashed ma n po wer »nH 
capacity in recent years under fee 
pressure of falling UK vehicle as- 
sembly and mounting i mports. 

Suppliers have expressed their 
concern about prospects and Austin 
Bower's collaboration with 
both privately to fee Government 
and in evidence to fee House of 
Commons trade and industry com- 


u« iy «xj per cam n«rt 

been dassified as Grade A in terms 

of quality and reliability of products 
in BMP, the proportion had now 
ctenbed to more than 80 per cart 
Starting next week, Austin Rover 

iSLi! "t**™ > 


« wi wooie-aay 

“rang sessions conducted by <&- 
****** *“d fee Department of In- 
dustry to explain both the new sys- 
tem Anri Mu i-. 


fen c e issue now stands. 

When he emerged next dav from 
his-politeS&essl&?meet- 
mg in the Oval Office, he certainly 
did not show any of fee signs trf 
someone who had been savaged by 
■ a pride of heavywigbts which, apart 
from the {Resident, mr-lnripH vice- 
president Bush. Mr George fflmlfa. 
the Secretary of Sta^Mr Caspar 
Weinberger, fee Defence secretary, 
Mr Frank r!m-hyv»j fee National Se- 
curity Adviser and Mr Howard Bak- 
er, fee President's news of 


ftefened suppliers would be se- 
lected according to whether they 
wert commercially viable; competi- 
tive on price in international mar- 
kets; and in the forefront (though 
not necessarily fee leader) of re- 
search and development 
Agreements would be d rawn up 
fur fee contract to cn nti n ii * in 
perpetuity" Mr Barr explained feat 
Austin Rover was looking to 1 a gen- 
uine partnership and a working re- 
lationship nndCT which bofe parties 

would Work to the w»wmw» aim of 

groducing Jtfae best product at fee 

Motor trade a y mt 

Frees 


The meeting had been useful and 
constructive wife both sides having 
an equal say. The President's cen- 
tral point had been to express “con- 
cern fay implication" about the co- 


herence of fee Affiance, but he had 
freely volunteered his de termin a- 
tion not to i n t e r v ene in British po- 
litical 

But perhaps ft was Immature, or 
just characteristically optimistic, of 

Mr Khmock to imagine that be was 
going to escape so bghtiy. For if fee 
Oval Office session had been, in fee 
T-nbom- leader’s own words “calm 
and gentle," US officials quickly set 
out to inffict some deep and damag- 
ing wounds after he had left the 
den. 

A brief but pointed statement 

from fee White House wasted neith- 
er words nor the opportunity to rub- 
bish Labour's defence strategy. The 
President had said he did not agree 
wife it and believed it would weak- 
en Note, undermine East-West rela- 
tions ftnri undercut the US negotiat- 
ing position at fee Geneva arms 

teTlrg- 

Full details of the White House 
line reached Mr Kihnodk during the 
afternoon, minutes after he had 
been taken onto the floor of the Se- 
nate, which temporarily susp en d e d 
T wcitipcs tn aplr omo him and to Bp- 

plrnid his arrival. 

■ His initial reaction on the steps of 
(Tn p f fad wm qra 5 nnA ft! g amine 

prise, end while he was dearly un- 
do: an obligation to put the best 
gloss on bis session wife fee Presi- 
dent, be fp pw r rt aback by 
the i nte r p re tive gap dividing re- 
pents of the Oval Office meeting. 




MrNefl Khwindt: , dhf Brgen c e 
erf views’ 

On Friday’s overnight flight back 
to London, Mr Mr Denis 

Healey, Labour's foreign affairs 
spf progmar^ and fee y***ll Labour 
h flri timo fe celebrate Mr Kin- 
node’s birthday *nri to digest what 
they believed looked increasingly 
fike a “stitch up." They emphasised 
feet fliwr pm antes jf fee mee t in g 
bore little relation to the White 
House version of events. 

The controversy has already ex- 
tended to aocuaaiious ***** Downing 


President Reagan: ‘concern 
for Nate’ 

Street played a hand In setting up 
Mr KYnnoric, in order to enable the 
President to knock him down just 
before the Prime Minister left for 
Moscow - a theory which Downing 
Street has veh em ently denied. 

But the only reel question to be 
answered is why Mr KitmnA and 
his team should have expected their 
visit to have any other pnrilwg , «nri 
why they persisted with the US 
mission after a visit last year which 
is not best remembered for its 


achievements. It is understood feat 
Mr Healey him«»lf at one stage 
thought it might be better for Mr 

Klnnnrtr Tvrt tp gn 

But the Labour leader passion- 
ately believes in bis party’s d efence 
strategy and, as he -said repeatedly 
during the visit, he did not intend to 
be apologetic or defensive and 
wanted fee trans-Atlantic differ , 
enoes aired oat in fee open. 

There was also a belief that, in an 
Afawfom year, a n»*i»ig wife the 
President would be a exer- 
cise in statesmanship- While photo- 
opportimities might have been re- 
stricted at the White House, Labour 
Party cameras were busy recording 
fee leader on his visits about town , 
no doubt for use is future party po- 
litical broadcasts. 

But by the time he saw fee Presi- 
dent to sped out a defence policy for 
which be knew would find tittle or 
no support, he had already openly 
attacked the “special, special rela- 
tionship" between Mrs Thatcher 
and the President, although he was 
careful not to blame Mr Reagan. 

Before leaving home be had at- 
tacked the Star Wars programme 
which the President was later 
moved to tell him represented the 
“biggest hope the free world has." 

As a counterbalance, his most re- 
cent statements suggesting a soft- 
ening of the deadlines for the remo- 
val erf Cruise missiles from Britain, 


so as not to upset fee Geneva talks, 
might have been welcomed as a not 
insignificant gesture fay fee US ad- 
ministration but fee issue was not 
even raised. 

He was also strangely defensive 
when ft came to describing fee par- 
ty’s policy as unilateralist It was 
not, be g™ , a gesture of disarma- 
ment , but “a question of achieving 
the best defence value for fee re- 
sources available." 

But despite what could be inter- 
preted as conciliatory gestures for 
US consumption, Mr Kxnnock’s 
plan to scrap nuclear weapons and 
to increase conventional forces re- 
mains firm fast The problem 
was that he confronted allies whose 
own opinions remain as resolute as 
they are di ffer en t to those of fee 
labour parly. 

No end of assurances about a con- 
tinuing c omm itment to Nato will 
convince the current US adminis- 
tration feat Mr Kinnock is on fee 
right wavelength. They believe that 
recent events on the arms control 
front have emanated from a 
strength gained from the posses- 
sion of nuclear forces which a La- 
bour government would give away. 

No end of speculation about who 
said what in the Oval Office will al- 
ter the perception of that divide. 
The visit will only have served to 
forcefully underline ft. 

Fight for lost support. Page 6 


Employer doubts on 
profit-related pay 

BY CHARLES LEADBEATER, LABOUR STAFF 


THE INTRODUCTION of profit-re- 
lated pay stffl faces considerable ob- 
stacles in spite of fee Governments 
proposal to allow part of such pay- 
ments to be ex e mp t from inwnne 
tax, fee -Conferathm cdLBriiish lit: 
dustry (CBI) warns in a report pub- 
lished today. 

The Chancellor of fee Exchequer 

unnnnnml in fee hwdget thin year 

that half of profit related payments 
w& be exempt from tax up to a lim- 
it of djOOO or 10 per emit of pay 
whichever is lower. Profit-related 
pay schemes will have to cover H) 
per cent of a company’s employees, 
for more than a year wife at least 5 
per cent of employees’ total pay pro- 
vided by profit-related payments. 

The CRTs employment affaire 
bulletin says feat while fee tax re- 


lief will make profifceelated pay 
schemes attractive, this wifi be off- 
art by the Governments proposal to 
remove the exemption fwmt Nation- 
al Insurance p aymen ts which ap- 
jplies.to profit-sharing schemes ad- 
ministered by trusts. 

The bulletin suggests that unite 
within co m p anie s where profit-re- 
lated pay schemes could operate 
might not have fee audited profit 
figures required fay fee Govern- 
ment's proposals. 

While a grai ning rnimhar nf mm. 
parties want to tie pay more dosely 
to performance many do not regard 

audited profits as an adequate mea- 
sure of an employee’s performance. 

Employment Affair*; CBI, Centre 
Point, 103 New Oxford Street, Lon- 
don W CIA IDU, annual subscrip- 
tion £70. 


Unions attempt to stem 
membership losses 

BY PtfflJP BASSETT. LABOUR EDITOR 

BRITAIN'S two large general membereMps a nd to extend into 
muons are both to establish sepa- new and unorganised areas of the 
rate studies of workplaces m order workforce, 
to help increase union involvement ^ TGWU’s infant is one of a 
and boost organisation and mem- ggiesef initiatives flowing fro m a 

bership reerwtnwnt^ two-day union strategy co nf erence 

Leaders of the TGWU.tranajktft at Eastbourne at the weekend, 

workers want to set up a compote? 

database of local labour market mr A background paper for fee con- 
formation. and the GMBU general ference says that fee union must 
union to asking all its members to target its recruitment efforts, find 
conduct a “workplace audit" to in- out where fee muon’s membership 
crease about fee is concentrated, and from that pub 

union's strength. Both moves are its main efforts mtoaraas of tittle 
attempts to try to stem the drop in or no ration membership. 




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■*"_-»•• -- » ■ -• - -ftr. * -•• _ j- . . *’ ■ 

financial Times Monday March 30 1987, 


6 



Labour fights 
to recover 
lost support 


BY JOHN HUNT 

THE LABOUR Party today begins 
a campaign to build up its s up port 
and improve its position in fbe opto* 
km polls after last week’s Gallup 
poll which put it third behind the 
Alliance. 

The campaign win concentrate on 
attacking the Government rather 
than the Social Democratic Party 
(SPD) and the liberals in die run* 
up to a general election (this year ot 
next) and local elections cm May 7. 

Tbday a Labour Party Trade 
Union Congress (TUC) statement 
wifl be launched outlining a Joint, 
stategy. It will highlight die Gov- 
ernments record on CTanpkymwt 
and the need for cooperation be* 
tween a Labour Government; trade 
union s employers to stimulate 
growth and create jobs. 

Taking part in the joint press 
conference will be Mr Neil Ktonock, 
Labour leader, Ur Nona an W iDis, 
general secretary of the TUC and 
Mr Roy Hattersley. Labour's depu- 
ty leader. 

The London Labour Party is also 

failring actfon to remitter the prtrero- 

ist image which the Tories have 
pjnnpri on it. A press conference 


win be held tod«y launching a cam- 
paign to bring back a London wide 
authority, and to emphasise what it 
sees as the achievements of the La- 
bour-contxoBed London boroughs. 

A private pcffl has warned Labour 

diat it is naming behind die Con- 
servatives in London. Next mout h 
Labour starts a big poster cam- 
paign, largely concentrated cm mar- 
ginal seats, attacking die Govern- 
ment and stating its alternative pol- 
icies. 

Over the weekend Labour shad- 
ow ministers made a concerted at- 
tack an the Government over a 
whole range of issues. 

Mr Bryan Gould, the party’s cam- 
paign coordinator, said that Mrs 
Thatcher's aim of eliminating so- 
cialism KmH wi a i Mhw 
to suppress any dissent from her 

views. Her real intention was to un- 
dermine pubfidy funded ed ucati on 
ami the proper provision of pen- 
sions. 

He predicted that she would 
make a "frontal assault” on the val- 
ues of millions of voters who did not 
difnk of »Tnmv«rives as ■nriaKrtB- 


Dockyard 
unions take 
minister 
to court 

ByCfMriwUtdbMlar 

TRADE UNIONS, worried over fee 
effort on members of privatisation 
of dm Royal Naval Dockyards at 
Devonport and Hosyfli will seek a 
High Court declaration today that 
the Secretary of State for Defence 
hag illegally to consult them 
about plans. 

The unions will be supported by 
Dr David Owen, leader of to Social 
De m ocra tic Party, and MP for Ply- 
mouth, Deva up art. 

Dr Owen’s mv ohrenient follows a 
stream of cranplrrinte from eosstifat- 
exits over due Government's han- 
dling of privatisation. He befieves 
many details of a plan to bring in a 
private man ag ing agency have not 
been adequately fina li s ed , leaving 
dockyard w o r ker s unsure of their 
eligibility for cnrfl sendcre redun- 
dancy and pensions payments. 

Dr Owen says the Ministry rf De- 
fence's failure to answer many of 
the detailed queries raised by dock- 


He plans to support die union's 
ar delaying the tranter of 
dockyards management to allow 
greats consultation with die six 
unions involved. 


U K NEWS 

on motor industry trade 
grows by over £lbn in year 



BY KENNETH GOODMG, MOTOR WDUSTHY CORRESPONDENT 


BRITAIN’S adverse balance of 
trade m motor ' fndasfry products 
wo rsened last year by more than 
£lta or 41 per cent compared with 
1985 to a record gifts. 

Trade in parts and accessories 
dived toto fee red for the first time. 
There was. a neg a t i ve balance o f 

£346.6m last year compared with a 
positive one of fillm in I96& 

The f as t-grow ing imbalance fa 
Brttamte ere business with the rest 
of dm worid eansed an ovezafl mo- 
tor industry trade iMWt for the 
first time in 1978. The c o mmercia l 
vehicle am o unt followed brio the 
red in 1984. 

Now it £s only hi trade in “other 
mote pcoductf*- agr icultu ral trao- 
tbossp ^unip^rs sod dosip trociiSi 
trailers, aemHsafleo and caravans* 
industrial wor ks trucks and trac- 

con- 


tatofirs- that remain in the 

The Society c£ Motor Manufac- 
turers and Traders (SMM3} winch 
ffanpiaj <fa» figures from Customs 
ftriii Bwfap data, pohxts out there 
will be a considerable time lag be- 
fore last year's improvement in UK 
c om p etitiv eness wfll be reflected in 
Impr oved trade fignrea. 

R gives a warning that export vol- 
umes are not hkety to increase sub- 
stantially in {fie dost term "be- 
cause of price rigidity, the need to 
re-establish dealer artworks and as 
immMiih w take ad van t a ge of 


the improved competiti v e position 
to increase margins^. 

On toe other hand, importers wffi 
not, in the short term, gn e up mar- 
ket share and may reduce ma r gi ns 
of profit rather than increase 
prices. 

There will also be a substantial 
delay before UK component prodne- 
m can reap the benefits of the de- 
valued pound. Meanwhile , com po- ■ 
ngnt im port s most be e xpected to 
grow because many UKJwfit vehi- 
cles incorporate foreign parts. 

In the number of im- 

ported vehicles in use in the UK - 
now half of all those on the road -is 

increasing and boosting toj de- 
mand from Qie aftermarket foreign 
parts and accessories. 

Car i m port s did not grow in vol- 
ume terms last year (they remained 
at L07m) as the major importers, 
Fred and General Motors, the 
VauxhaU gr o up , out the number 
they brought in from their contin- 
ental factories. 


fay 15 per cent compared wife 19 85. 
Tiris suggests importing companies 

hare been absorbrng some cf to in- 

creased cost resulting from ster- 
ling's decgesciotion because the 
pound toll last year by about 20 per 
rpnt compared wife EMS curren- 
cies and fee yen. 


UK Trade to 

Kotor to* 

rov 

Fiufiecta 

______ 


IMS 

IMS 



iltobJ 


tx «s 

Ut2 

Cnnptot 
tomaagwe 
Other cw 

88 

38W 

n 

2888 


ZSSffJt 

2J52.1 

Otbvpradbolv 

IMS 

8889 

Cm 

ISU 

vte 

4J917 

cwtoh* 

2987 

MS 


4987 

9889 

Parts and 

1807 

8^0987 

OfeH prnrtnrita 

rots 

9982 

Core 

TVeJe hi 

-asre 

4TO 

CmapteS 

-1817 



■3BU 


-444S 

-MAS 


Ml 

4NJ 


3481 

45*7 

Total ' 

-2JS83 -3JBA 

Source: SMMTfnxa Customs and 
Excise data. 


Car expo rt s Ml to volume, from 
240,247 to 1985 to 201,411, but to- 
f w m aEii in value by 3 percent ref- 
lecting the fact feat fee DK is ex - 
porting mure hi^priced Ja gua rs. 
but fewer car kite from ftngwt- 
Talbot to Iran. 



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DAVID WATT 

Outstanding British 
political journalist 

SKSASSS gfiS 5S3SSS 

Sasrasast 

•«» ^%HmaMinBrnssds.Asfee 

cal ferns* to fee FTs AmenOHi 

SSHSia- 

He c au ght poBq when waa 
yomigsta ferawhra to fisease 
bad been ahnmri rilnilnat ed an d, al- ^ r ^ m 

1 » recovered, smnettoies he 

stffl sagged ton to p ^i. He (fied ^ „ 

when be picked up * me power *— the next 10 rears - aKhooghifc* 
cable Mown down by. to wind at ^ earoHaat fa*tent 

his Ox fordsh i r e home. _ and features on pafitical tomes: 

He became a Joc raaKat to to /ufenngfi, moatof his time at to- 
great days of to Spectator Wffl* FT was 1 meat far writing ab ou t p ofc 
graduate cooid be packed w ^ pa fa fai tiia to fee Uper 
up from fee University andbeanne wait mafelnrfeertfiaiJ feat, Asan- 
theatre offle « Consxom Market ABSaStant Batov hr played vfift 
cazespocdent (and quite posasty ^ in helping to iw»i«|p fee! chk 

seme- pSte^arvteWeseeS 

times to regret that to his articles y^ J^rihiTHy far Bte mrvey pw^ 
he never put m enoupi jew^ar . . . n n wi ha pinrad an mmor 4 

though he could be sharply witty m ^mt part terih to^ento^ar 
private. - range of FT surrey* and improving 

Nooaewho knew mm then oclsbt thor oaahtv and amamEinin; 
er could doubt to intense serious* r : 

ness wife which he rt^toA to Abow all Watfe tariparam6* : 
writings. He would to Bted to interests and experience made Mih. 

hare been an ecfitnr-ot fee Bccmo- fa^Tiy nritEri for his partin 

inist or to Observer -but soroe- the ev^otiim at fee Rnandat 
how feat never faapp^dand aride jmes during to 1980s and unfit 
of him that may have been orflHaiit iwmg this frn* fee paper was. 
was never allowed to fl o u ris h. . ; onfcfnMa eoopflgita vftv 

Among to potitioans he wrote nance and business to ptagr > 
about, however critknSy, healways stronger political role; it was to* 
hadanencamooB re^ecLWIienlatr increasingly se^ng ttself as an itt- 
er to life be moved to fee Rental In- taknationalratoar feanapusetydarj 
sfitnto cd It ri ern a titti al Affams mestic uewapapot . Watte integy 
Ecnzse} and haf to re* t^tnaWat bud into, cogdad wife to 

1 noBcv aD over again. — “ — * — -* — J 

he achieved a 
internattonal 
tewas writto 

RAY MAUGHAN 

Respected City writer 

BATMAUGHAN, who died last Fri- 
day eventog at to age of 38 after a 
fauw battie against cancer, wfll be 
sad(y nrissed by Ms many friends 
andcontactebofemjowraaBsmand 
in fee Qty of Ioodon. 

He was reeentiy assistant city 
edto of to Sunday Ttograpii, but 
prerioo^y he spent six years an to 
Financial Times, where he was 
mainly engaged to iris fa vourite ae- 
tivity as a r epor tg cf Qty ators, , 
specialty takeover an area:.in 
vriaidihts knowledge was second to 


s' 


MugW i rinwiriHife ffiimt 
finess and good hrnnoar woe astai- 

kt i hi ^ l y nT MHi i 'nnm ^ ' ty tnglc 

imp a ct of disease during file past 
two years. He endBied stranach 
surgery to fee summer of 1985 wife 


chegrfatoRg. 

He reporte d most of to ntojoria- 
dhstrialtakeoverstariesaftoeor- 
tg 1980b, and moved surefootedtym 
an area of journalism which re- 
qaires a great deal rf ifiscretam in 
fee of confidenlifll htoe 

mation. 

Despite a nose for news, he never 
alfowed the pressure to break asto- 
ry firet tb tempt hhn to betrey/% 
contact- Ibis meant feat be wan 
very highiy respected by ^JSor exam-; 
pie, to c o rp o fat e finance extotr 

rit wwivS u iTit iumlpL 

He Isares a wiSt, Gay and tinwe _ 
«nmn children, Lewis, Natafie «wi4 
Kdnnm d, fee youngest hetogo batty ~ 
of anty seven monfea 


• u-7 

- H 


1 

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anodier. This fiexibflhy helps to diversify rtdg, and provides to 


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scare means me Raid ofes investors to ideal oppor t unity to 
^rtirtpare in Europe's grow*. Send foe details oftbe Tyndall 
Guardian Biropean Fund limited and a lfato w h ic h 

pm^Mamrir w i Brn w ii “ 

We wfflako saidyou our quarteriy Investment Revfcw- 

tpest analvsB. market bv rmJr*t ^r; 1 . 

> prospects 




■ --v.- 





*TYNDALL GLURIll an™ 
EfROPEAM F^n IlMlTFn 










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Knancial Times Monday March 30 1987 



UK NEWS 

nears deal with 


Clothing 




de Havilland of Canada 


bywchael donhe , aerospace correspondent 


SHOHT BROTHERS, the Belfasfc- 
“ a sed aerospace manufacturer, Is 
close fo launching a joint pro- 
gajfflie With the BbemgWted de 
Havniand - Aihsaft Company of 
Canada XD HC) far a new short- 


er. 


ad ier air line servicem lSat^BSal- 
ly BHMpfaminting- bat eventually 
rqdacm^ the existii^ aircraft bnilt 
fay toe two companies, such as the 
DHC Dashfi and Short 380 Stou- 
ter tadx>-propeller aircraft 
The two companies rfgiwjl an 
agreement to collaborate at the 
FbndmHighak'abowIast Septem- 
ba, because- of the increasing 
' 11 in an increasingly 


crowded market for taweoet short 


range, 36-jdus seater commuter, re- 
gional and local-service airliners. 
'Store toes, they have been work* 
mg.to determine die potential mar- 
ket for a new airliner, and «*»■» 
kind of aircraft it ought to be. 

A. joint statement fay DHC and 
Short Brothers says that they are 
“now in agreement on ba sic par- 
ameters for the new aircraft" 

They are aiming at the “low end 
of the passenger range far the air* 
craft, white combining a wide-bod- 
led cross-section far op timum pas- 
senger comfort 

“Attbesame time Short Brothers 
and de Havilland are tWxbratoH ^ 
ensuring the lowest possible direct 
operating costs to provide an eco- 

wnic, cost-dfective product far air^ 

fane and utility apptinrtions.” 


A i« gt project team from the two 

Companies hpgirn hudrng mar . 

ket responses far a new aircraft 
“and win now accelerate interviews 
key operators around the 
world for the Hurt few mnwflw to 
fm e-tane the market assessment" 
.Provided the responses are satig- 
factory ^ decision, to launch a joint 
programme will be taken later this 
year,” with a view to entry into air- 
line service by 1991. 

Shut Brothers had originally 
signed a collaborative agreement 
on new regional and commuter air- 
liners with Emfaraer of 
a mqjor win^f^ffpy of ynrf> air- 
craft, hot that agreement effective- 
ly lapsed because of Embraces de- 
sire to draw closer to other Sooth 
American aircraft builders. 


Managers’ basic pay up 6.3% 


BY hBCHAB. SKAPtMKER 

UK MANAGERS’ basic pay rose by 
an average of 63 per cent in toe 
year to February 1987, according to 
today by Reward 

The increase meant that toe aver- 
age bask managerial salary broke 
the £124)00 level far the first tone. 
3he Calculations ex&lmfe arinAw 


expect a 55 per cent increase in 
managerial salaries over toe irext 
12 months, the average manage- 
ment basic salary of £12400 con- 
cealed narked regional variations. 

The median managerial salary in 


tradon was £14471, followed by 
Scotland at £124111 and toe sooth 
east of England (excluding London) 
a t £12 ,480. The lowest mpdian man- 
fgenal pay was in toe West Mid- 
lands at £11,077. 

Althoogh managers in London 
and toe south-esst of England were 
paid above toe national average, 
toe survey found that they were 
generally undercompensated far 
the h i g h e r cost of Irving in ti*n«* 
areas. 

Salary levels in London were 174 
per cent above toe national average 
while the cost of living in the capital 
was found to be 3&2 per cent above 


toe national average. Salary levels 
in Scotland, on toe other hand, 
•wore 42 per cent above the national 
average in an area with firing costs 
L3 per cent less than the national 
average. 

The highest-paid senior manag- 
ers in the UK were general manag- 
ers on a wiwWmi £24£85, fallowed 
by advertising/ public relations 
managers on £234103. The lowest- 
paid senior managers were found to 
be chief surveyors, with a median 
salary of £16, 231. 

Cost Re- 


Banco Nacional do 
Desenvolvimento Economico 

U.S.$50,000,000 
Floating Rate Notes 1989 

Notice is hereby given 

pursuant to the 'farms and Conditions of tfw Notes that 

for the three months from 
30th March 1987 to 30th June 1987 
.. the Notes wfl carry an Interest rate of B%% per annum. 

On 30th June 1987 interest of U.S.S 17.25 wflf be 
due per US.81.CXX) Note and U.S.5 172.60 due . 
per U.S.3104XX) Note tor Coupon No. 32. 

EBC Amro Bank Limited 
(Agent Bank) 

30th March 1987. 


port, peb&Jdng by 
Surveys, Reward House, 1 WO 
Stone, Staffs STIS 8BA. £90. 


Job mobility 
aid urged 

EMPLOYERS are pressing toe Go^ 
wiunwit to twMp the problem of 
high property prices which' are pre- 
venting same people moving to find 
jobs. 

Mr Derek Palmer, policy adviser 
an re-location to the Confederation 
of British Industry (CBI) The 

problem of spiralling home prices 
is the biggest angle factor in pre- 
venting labour mofaUfty uwfl there is 
no sign of toe c urrent surge abat- 
ing.” 


imports 
rise 19% 
in year 

By Christopher Parima, 
Consumer Industries Etftor 

THH RISE of sterling against Far 
Eastern currencies helped boost im- 
ports of dotting into the UK last 
year by 19 per rent, according to a 
report from toe British Textile Con- 
federation. 

Balancing this against export 
successes in the European Comma- 
nfty, where the relative weakness 
of re*™** fato play, toe tex- 

tile »«i clntojng industries per- 
formed well in a difficult year, Ur 
Harry Leach, confederation presi- 
dent, said in a commentary on toe 
report 

Volume exports rose 4 per cent 

frtr fmivhotj rlnWimg jtfld 1 per 

far textiles, in spite of reduced sales 
in the US ^ MMHfe East 
failing for more rig o ro us moni- 
toring of toe Multi Fibre Arrange- 
ment (UFA), an mfa>rn*»*irm»l pact 
governing trade in twytflgg, Mr 
IpwA >mff< volume imports fa r m 
MFA participants had grown by 21 
per cent last year. 

T ? i e confederation mIM for ur- 
gent action to cope with recent rap- 
id growt h in im p o r ts of dothes 
made with ramie - a fibre extracted 
from a nettle-like plant g r o w n in 
the Far East 

Mixed in certain proportions with 
other fibres, these products are ex- 
empt from UFA quotas. There was 
a surge In imports during the final 
three months of last year, toe re- 
port says. 

Suppliers in Hong Kong, South 
Korea and Macao stepped op ship- 
ments to such an extent that Brit- 
ain impo rt ed afriwet 3154)00 sweat- 
ers rmrtninmg ramie in 1986 com- 
pared with 564)00 in 1985. Woven 
products rrtn+nfnfng ramie were 
starting to flow in. 

The best markets far dotting ex- 
ports last year indnded West Ger- 
many, which bought 31 per cent 
more tiwTi fa 1985, spgnHmg a total 
of £1 43.4m. 

However, sales to toe US, toe UK 
industry's second-best market after 
Ireland - up 9 per cent at £2062m - 
dropped 11 per cent to £l43.7m. 

Strong increases were also re- 
corded in France, Belgium, the 
Netherlands and Norway. 

Trends in textile and clothing 
trade «n J9ML C2S, from British Tex- 
tile Confederation, 24 Buckingham 
Gate, London SWIE 8LB. 


LE CASE DEL GOLF 
AT COSTA SMERALDA 


Experience the view! Two bays and one of the 
finest golf courses in the Mediterranean. 

Robert Trent-Jones Snn claims that the Pevero Golf 
Club at Gosta Smeralda is the finest he has ever designed in 
a lifetime ofbuilding the best courses in the world. 

He would be the first to agree that he had a lot ofhdp 
from the magnificent Sardinian geography. The course 
stretches from a promontory with Pevero Bay at the north 
end, and the famous CaladiVolpe in the south. It is this 
unrivalled coastal panorama that greets every owner of an 
apartment at Le Case del Golf on the heights overlooking 
the dub house, just a short stroll from the first tee: 

Le Case del Golfis a result ofthe most careful 
development ofthe Costa Smeralda. It is a small, friendly 
village consisting ofindividually created apartments 
designed by the Roman architect Riccardo Bonicatti. 
They stand as ifhewn from the hillside, and reflect the 
natural'grandeur of their setting perfectly. Splashes of 
colour from bouganvillia, oleander and lavender frame 
the terraces, ideal for summer cocktail parties. 

Olbia, the gateway to die Costa Smeralda, is just two 


hours from many European capitals. And once you reach. 
your apartment with a view in Le Case del Gol£ you are 
just minutes away from some of die most beautiful beaches 
on the Mediterranean, or from the golfing challenge of 
Pevero. 

For more information phone Jennie Finder of Euro Property 
Advisers T.imitw1 t 0722 330847 or mail the coupon if you prefer tp: 
Immobiliare Costa Smeralda, 07020 Porto Cervo (Sassan), Italy. 
TeL 0039/789/92042. 


n 


Please send me infermation about Costa S mera lda 


Name 


Addrexs 


THE UNSPOILED MEDITERRANEAN 


With some mveslmenfs, 

the dividend 
is pure pleasure. 


After any investment, there 
comes a period of assessment 
Fortunately, in the case of the new 
BMW 7 Series, it's invariably a very 


satisfying time. As you discover the 
pleasure of relaxing travel in a car 
whose interior is one of the quietest 
in the world, whatever your speed. 


You sit back completely at 
ease in the driver's seat with the 
reassuring comfort of its sophisti- 
cated multi-zone padding. 

In front of you, the ergonomi- 
cally designed cockpit layout 
And, secure in the knowledge 
that you have 220 horsepower and 
a max. torque of 315 Nm at your 
constant disposal, every kilometre 
you travel acquires a new quality. 
And not just when you're driving in a 


straight line down the motorway. 

The “precision-steering^ 
suspension and the ABS braking 
system ensure 
perfect behaviour 
even on the really 
twisting stretches. 

Quite simply, the 
new BMW 7 Series ... 

means pure driving Thewtimqte 

pleasure - every Awing 

day of the year. machine 



8 


We are pleased to announce that 

Baring Securities Inc* 


has formed a 

Euroconvertible Bond Trading Unit 
and that 

Robert Lederraan 

Vice President 


Sibyl GSaager 

Vice President 


Mikhail Filimonov 

V5ce President 

ftter B. Zekich 

have joined the firm. 


Baring Securities Inc. 

450 F&rk Avenue 


New York, New York 10022 

Telephone (212) 355-3500 Telex 424871 Tekfex (212) 371-5967 






New Issue 
March 27. 1987 


This advertisement appears 
as a ma tter of record only. 


O staton 


Den norske stats 


a.s 


Stavanger, Norway 


DM 200,000,000 
5%% Bonds of 1987/1993 


Issue Price: 
interest: 
Repayment: 
Listing: 


10014% 

5%% payable annually on March 27 
March 27, 1993 at par 
Frankfurt am Main 


DM 200,000,000 
&A% Bonds of 1987/1997 


Issue Price: 
interest: 
Repayment: 
Listing: 


100 % 

654% payable annually on March 27 
March 27. 1997 at par 
Frankfurt am Main 


• 

m 

■ 

• 

• 

Deutsche Bank 

AktiengaseDschaft 


: Commerzbank 

CSFB-Effectenbank 

DresdnerBank 

2 Ak&engesellschaft 


Aktiengesellschaft 

: SchweizerischeBankgesellschaft Schweizerischer Bankverein 

Westdeutsche Landesbank 

(Deutschland) AG 

(Deutschland) AG 

Girozentrale 

Bank of Tokyo (Deutschland) 

Banque Nationale de Paris 

EBC Amro Bank 

Aktiengesettschaft 

Limited 


Morgan Guaranty GmbH 


ABC 

Bergen Bank A/S 

Christiania Bank og Kreditkasse 

Union Bank of Norway 

Den norske Credrtbank 


Algsmcm Bank Nadartand N.V. 

Arab Banking Corporation - 

Amhold end S. Bteicfcroeder, tnc. 


Dais ACo. GmbH 


Baden-WOrttembergiscfie Bank 

Julius Baer International 

Banca ComroercfaJa ItaOana 

Aktiengesellsehaft 

limited 


Banco dal Gcrttardo 

Bank Brussel Lambert If.' VI 

Bank Kir Gemelnwktseheft 



Aktiengesallscheft 

Bank GutzwUler, Kura, Bunganer (Overseas) 

BankJ.VontobeiACo.AG 

Banque Gdndrale du Luxembourg &A. 

Banque Indasuez 

Banque Internationale h Luxembourg SA. 

Banque tie Neuflize. Schlumberger. MePet 

Banque Paribas Capital Markets 

Baring Brothers a Co^ 

Beyerische Hypothekan- und WachseHSank 

GmbH 

Limited 

Aktiengesellschaft 

Bayorischo Landesbank 

Bayertocha Vareinsbank 

BertineT Kandefs- und Frankfurter Bank 

Girozentxale 

Aktiengesellschaft 


Chase Bank Aktlengesadscfiaft 

Citibank 

Compagnie de Banque 


Aktiengesellschaft 

et d*lnve*tissenMfits. C8I 

Copenhagen Handelsbank 

County NatWest Capitai Markets 

Qddit Commercial de Franca 

Cfedrtarrstaft-Sankve rein 

Daiwa Europe (Deutschland] GmbH 

08 Capital Markets (Atria) 



Limited 

DelbrOck&Co. 

Den Danske Bank 

Deutsche Bank Capital 

Corporation 

DSL8ank 

Deutsche Girazentrale 

DGBonk 

-Deutsche Kommunalbank- 

Deutsche Genossenschaftsbank 

Deutsche Siedtungs- und Landesrentsnbank 

Euramobilfare S.p.A. 

Generals Bank 

Girozentrala und Bank dor 


bsterralchrschen Sparicsssen 


. 

Aktiengesellschaft 

Hembros Bank 

Hamburg fache Landesbank 

Georg Hsuck&Sohn Bankien 

Limited 

-Girazentrale — 

Kommanditgeseilschaft auf Aktien 

Hesstocha Landesbank 

Hill Samuel &CO. 

Industriebank von Japan (Deutschland) 

-Girazentrale- 

Limited 

Aktiengesellschaft 

Kansal ll»Osake-Panklci 

(Oefnwart Benson 

KredfetbanfcN.V. 


Limited 


Kradietbank SA. Luxembourg eoise 

Kuwait Foreign Trading Contracting & 

Landesbank Rheiniand-Pfalz 

Investment Co. (S.A.K.) 

-Girozentrale- 

Leu Securities Limited 

LJoyds Merchant Bank Limited 

Manufacturers Hanover 



Limited 

Merck. Rnck&Cou 

Menrdl Lynch International A Co. 

B. Metdar seeL Sohn a Co. 

Samuel Montagu & Co. 

Morgan Granted ACo. 

Morgan Stanley International 

Limited 

Limited 


The NSdn Securities Co. (Deutschland) GmbH 

Nomura Europe GmbH 

Norddeutscba Landesbank 

dstcurelchische Lfinderbank 

SaL Oppeahejmjr.ACJe. 

Orion Royal Batk 

Aktienges^lscheft 


Limited 

Postipankld 

Privtbanken A/S 

H.M. Rothschild ASonx 


Limited 

Salomon Brothers AG 

J. Henry Schroder Wagg A Co. 

SbaaraowLehinroBiotfaeixIntetnetionii 

Limited 


Socidtd Gdndrale - 

Svens ka Handelsbanken PLC 

Swiss Cantonatbenka 

EteSssische Bank & Co. 


■ 

Swiss Volksbank 

lVtokaus & Burfchardt KGaA 

Va reins- und Westbank 


Aktienges^sriuft 

M.M. Warburg -Brinckm a nn, Wtrtz&Co. 

S.G. Warburg Securities 

Westfalenbank 

Wood Gundy Inc. 


Yamalchi international (Deutschland) GmbH 
NMMIIHHMtHMIMHmHHMHNe* 



Financial Times Monday March 30 1987 


UK NEWS 

CURRENCY CHANGES FAIL TO HELP BRITISH PRODUCERS 

Machine tool imports jump to £381m 


BY KICK GARNETT 

IMPORTED MACHINE tods ap- 
pear to have taken a larger share ca 

the UK market last year, against 
the trend of the previou s thr ee 
years, and despite curacy 
changes which g h«niH have haipea 
British producers. 

According to provisional esti- 
mates from the Machine Tool 
Trades Association, the total con- 
sumption of machine tools in the 
UK rose to almost C750m last year, 
against £64Qm in 1885. 

Imports jumped from £304m to 

rflftim, indicating that machine 
tools wiamrfwr friTpri outsdfi the UK 

took more titan 50 per cent of the 
market for the first tune 
since 1882. , 

Bgort s of UK-produced machine 
tods, inriuriing reexports, re- 


named almost static last year at 
f TflOm only £3m higher then in 
1981 

However, total output of the Brit- 
ish tod industry during 

the first nine months of 1988 - the 
jafaMrt period for which statistics 

have been collected -rose to E441m 

from the £418m infee first three 
quartos of the previons year. 

A great deal of caution hss to be 
exercised with these figures which 
refer only to metahcutting machine 
tools. 

In ri*» in the value of the yen and 

D-Mark might have had some dis- 
torting effects, tor e x amp le, by 
boosting the sales figures tor im- 
ports. 

West Germany retained its posi- 
tion as fee leafing exporter <rf ma- 


rtifr ip tods to the UKmeasnred in 
terms of staling sales. It was fal- 
lowed by Japan, the US and Swit- 
zerland. 

Apart from that, the fourth quar- 
ter UK production figure is also an 
estimate. This riB affect the oread 
UK c onstaipti oa figure winch is 
based on British production, less 


Nevatiieless, the figures seen to 
show timt British pcodnces have 
failed so far to take advantage of 
the beneficial carrency changes 
Tie one positive area of growth 
for UK producers in Britain' itself 
are nmnn p i b n* nnmericalty an- 
tidied (CNC) nwdmring centres. 
Danand for centres, 

which are made by a number of ex- 
panding UK-based producers, has 


vme appear to nsw 
by smre than 20 pet cent 
This could that British 

producers have been toting out 
mainly in conventional non-CNC 
machines. 

QuIbbi -and Excise, which' jko- 
vides the figures used by the ms* 
chinetod makers, also produces.. 

on unit imports and ex*, 
ports, bid these are notoriously wk 
rdiaUe because of the- reninting : 


T hem figure todude the statistic 
the nnmber of machine- tods 
from Japan rose by a 
third to mote than 4,000 tnfifs.al . 
though the total value wasoufy 0 
per cent bigier in sterling term! ' 


CU sets up Eurofunding facility 


BY STEPtEN RDLER 

COMMERCIAL UNION, ana of the 
top five composite insurance com- 
panies in tiie UK, has launched an 
note financing in the in- 
tenutional marke ts enabling it to 
issue short-term commercial paper 
and medium-term notes to a total 
value of Ecu 750m ($85Qm) in a var- 


iety of currencies. 

The move illustrates the way 
British financial instititions are 
moving away from bank loans and 
into more creative and flexible fi- 
nancing. 

The increased reliance of British 
faiMirisi institutions on interna- 
tional financial markets was muter- 

crr y ftvi only the day before when 


two budding societies; Abbey Na- 
tional and the Bristol and West, an- 
nounced plans to raise up to SL25bn 
in the foreign currency certificates 
of deposit 

Commercial Union said the fi- 
nancing “farms put of our Euro- 
pean finimrifll senriceg strategy en- 
ahfing us to take advantage of the 

competitive rates available." 

The programme allows the com- 
pany to issue commen sal paper, 
short-term tradeable IOUs, in the 
gtyrfTmg mayk^t, M wrfl ag 

in d i rtim-g »mH in the domestic 
Dutch market through its Delta 
Lloyd subsidiary. 


It will he able to issue medium- 
term notes, which win be Bate d in 
tiie stock exrftattge, into 

both the Eurodollar and domestic 
stating mark ets . 

Mr Tony Wyand, commeroal 
Umaa's Director and General Mm- 


APPOINTMENTS 

Changes at 
Whitbread 


pany^s continued development in 
the financial services .sector to St- 
rops.” 

ft granted five dealers hr fie 
programme, Barclays de Zoete 
Wedd, Credit Smssa First Boston, 
Goldman Sachs International, 
Swiss Bank Corporation, ftitema- 
tional and S.G. Warburg. •. 


Ifr BkW Stmpasw has been 
appointed finance director of ihe re- 
tafl. division, of Whitbread & Co 
from May L He itoceeeds Mr Nor- 
man Sgrn nt who bite moved, to 
Whitbread head quarter s *S special- 
ist director. Corpor ate ds ye t macnt 
Mr SflxnppQtti was iinHoflB am prop- 

erty director at Whitbread bate; fie 
company's mnagaf finae i faM o tf 
afore Jte formation in 198ft, 


.***•; . y ; 

IttngsfiaM Associates has ip-- 
ctortedMrC hriteophBC lHdtei Bm - 
director and Mr UaltoiH 
It Anthemr Bonn and Hr Dmrid 


Row oyer mobile telephone channels 


BY TERRY DODSWORTH, INDUSTRIAL EDITOR 


OFTEL, the regulatory agency for 
the UK telecom u nnksatjons indus- 
try, been celled in to adjudicate 

on a row between BT Mobile Com- 
munications wri Racal Vodafone, 
Hm tiro UK i-ellnlflr m obflc tele- 
phone grotgjs, over an appeal for 
tfw release erf new transmission 
channels. 

Vodafime has asked for access to 
the «**""*H which had been re- 
served for fie proposed new pan- 


European digital mobile service, to 
tide it over a temporary capacity 
shortage in its trans- 

mission area. 


even on a temporary basis, could 
prejudice the delicate final stages 
of negotiations over the estabfish- 
mentaf fie European mobile radio 


BTMC, h ow e ver , has objected vi- 
gorously to fie request, arguing 
♦h»* Vodafone is trying to gsm an 
TTnfniV advantage by avoiding far- 
ther investment to raise capacity in 
its wiTTpnt network. It diAM 
that the release of the channels. 


mMfid fie battle is an arrange- 
ment established at fie launch ef 
the UK cdhzlarsystan under which 
400 of fia amiable transmission 
channels were reserved for fie pan- 
European service. 




CAISSE NATIONALE 
DES AUTOROUTES 

85,000,000 USS 12.7556 
1980/95 issue 


The ISLX is quite simply part of the most successful 
family of phone systems in the world. 

And because it can be updated to suit our cSents* needs, 
the sky’s the limit. 

For the CJvfl Aviation Authorfiy. 

And tor you? mm jm * 

GEC Refianca Lkrated. 'Bimels 

WeMngborough, Northerns, NN8 

TeL 0800 622766 (tree at charge) ^ Jm 


We inform tiier bondholders that In accordance with 
the terms and conxfitLons of the bonds, Gates* 
NatlonaXe des Antoroutes has elected to redeem all 
its outstanding bonds an May 1st, 1987 at 102%. 

Interest on the sadd bonds will cease to accrue on 
May 1st, 1987. . 

The notes win be reimbursed, coupons No. 8 due 
May 1st, 1988 attached, according to the terms and 
conamons of the bonds. 

Luxembourg, March 30th, 1987. 


THE LAST WORD IN TELECOMMUNICATIONS 


CAISSE DTEPARGNE DE VET AT 
1, Place de Metz 
LUXEMBOURG 
as fiscal Agent 




CONSOLIDATED BALANCE SHEET 
AS AT 31 DECEMBER 1986 
(Expressed in thousands of US dollars) 

1986 1985 


Cash and due from banks 
Deposits at interest with banks 
Trading investments 
Long term investments 
Investments in and amounts doe 
from associated companies 
Loans and advances 
Fixed assets 
Other assets 


1,587 931 

86,968 169,790 
83,784 2,207 

63,328 34,725 


CONSOLIDATED STATEMENT OF INCOME 
AND RETAINED EARNINGS 
FOR THE YEAR ENDED 31 DECEMBER 1986 
(Expressed in thousands of US doflars) 

1986 1985 


B 


Interest income 
Interest expense 

Net interest income 
Other income 


35,954' 37,164 

(24487) ( 24,955) 


TOTAL ASSETS 
Liabilities 


32,453 1420 

214J67 327,261 
15,134 15,644 

6,272 5.929 

503,793 558,007 


11,767 

7,931 


12489 

3,192 


Bank deposits 
Customer deposits 
Other liabilities 


TOTAL LIABILITIES 


254,067 328,921 
83,134 66,016 

5584 5414 

342,785 400,451 


Total net income 19,698 

General expenses (8,459) 

Net operating income before 
p r ov i sio ns - t t yw 

Loan loss provision ' (7,200 ) 

Provision for diminution in value 
of investment in associated comp a ny (1,500) 


19,698 15^01; 

g^9) (7,076) 


Share of profit/(loss) of 
associated companies 


(67) 


.Sh arah o Mr rt* equity: 

Share capital 
Legal reserve 
General reserve 

Retained earnings 

TOTAL SHAREHOLDERS’ EQUITY 

TOTAL LIABILITIES AND . 
SHAREHOLDERS’ EQUITY 


139,944 139,944 


2,860 

2,043 

16461 


2405 

1,701 

13,406 


Net income beforeappropriations 
Transfer to Legal reserve 
Transfer to General reserve 


161,008 157456 


Net income after ap p r opriations 
Exchange revaluation of 
investment in associated com pa ny 
Retained earnings brought forward 


843 

13,406 


793. 558,007 | Retained earnings carried forward - 16,161 13 406 


ABDUL RAHMAN SALEM AL-ATEEQZ 
■CHAIRMAN 


KJJLKATCHADLUUAN 

GENERAL MANAGER & CHIEF EX ECU TIVF 

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10 




rffMiiim '■■***■ 


financial Times Monday March SO 1987 


THE THATCHER YEARS 


Michael Prowse on manufacturing 

A decline which may 
have gone too far 


Manufacturing output 


Rate of return in 
manufacturing 


in manufactures 


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A S A manufacturing nation, 
observed the Midland 
Bank last year, Britain is 
on a par with Brazil, having 
been overtaken by Italy In the 
late 1970s. The remark, buried 
In a thoughtful analysis of the 
industrial outlook, neatly encap- 
sulates two anxieties about 
Britain's manufacturing base: 
that it is too small and that it 
is too low-tech for what used to 
be one of the world's leading 
Industrial powers. 

‘ Such anxieties are unlikely 
to be assuaged by ministerial 
hype in the run up to the 
general election. Fuller order 
books, higher productivity and 
better export prospects are not 
things to be dismissed lightly. 
But they do not yet amount 
to a revival on the scale de- 
manded by the Government's 
critics who wonder what kind 
of economic renaissance 
Thatcherism can have wrought 
when manufacturing output is 
still lower than the level in- 
herited from the Labour Party 
in 1979. 

The UK contraction contrasts 
unfavourably with "expansion 
overseas. During the Thatcher 
years. Japanese. US and West 
German manufacturing produc- 
tion has risen by 31 per cent; 
17 per cent and 11 per cent. 
World trading conditions have 
been difficult for all countries 
for much of the period, but the 
figures show that industrialists 
overseas have on the whole 
coped better than their British 
counterparts. 

Why, when the British 
economy is entering its seventh 
year of steady growth, has 
manufacturing output taken so 
long to get within shouting 
distance of its former peak? 
The short answer is that the 
sector experienced a recession 
in 1980/81 that has few pre- 
cedents in modem times. Output 
fell by more than IS per cent 
in two years and nearly ljm 
jobs were shed. 

At the time, the contraction 
of manufacturing was seen in 


part as being a natural con- 
comitant of the huge increase 
in the volume and value of 
North Sea oil production. The 
rather crude idea was that space 
somehow had to be created in 
the balance of payments for 
this sudden new source of 
revenue, and that the obvious 
mechanism was a rise in the 
exchange rate which would 
retard the production of non-oil 
tradeable goods and make the 
service sector of the economy 
relatively more profitable. 

The argument was always 
wrong — as the Governor of the 
Bank of England pointed out as 
early as 1980. In principle, there 
was no reason why oil produc- 
tion should not have been a net 
addition to GNF. It did not need 
to crowd out any other economic 
activity. Other countries which 
have experienced proportion- 
ately more disruption from 
rapidly rising energy output — 
Norway and the Netherlands for 
example — have managed to 
avoid a large absolute contrac- 
tion of manufacturing output. 

Manufacturers’ (peculiar mis- 
fortune was that oH prices and 
North Sea production soared 

S recisely when a newly-elected 
onservative Administration 
was determined to gain control 
of rapidly rising inflation. 
Because of high Inflation, the 
Government was reluctant to 
loosen -monetary policy and 
lower interest rates or do any- 
thing much ito protect manufac- 
turing industry from the 
devastating effects of a grossly 
over-valued exchange rate. 

The extent of the over-valua- 
tion is easily forgotten. It bears 
comparison with the over- 
valuation of the US dollar 
between 1983 and 1985. The 
scale of the contraction of manu- 
facturing output in 1980-81 is 
perhaps not so surprising given 
that the pound peaked at more 
than DM 5.00 and averaged 
DM 4.40 over the two years. 
Today the pound is worth only 

DM 2.90. 

The erosion of Britain’s manu- 
facturing base in the early 


Thatcher years was thus at least 
in part the consequence of 
excessive reliance on exchange 
rate appreciation as a means of 
combatting Inflation. But it 
also has to be seen in a longer 
historical context 

Mrs Thatcher, after all, 
inherited a lower level of manu- 
facturing output in 1979 than 
Mr Harold Wilson had inherited 
from Mr Edward Heath in 1974. 
Import penetration bad been 
rising for decades: between 1965 
and 1979, the volume of im- 
ports roughly tripled relative to 
domestic production of manu- 
factured godos. Britain had also 
seen a progressive collapse of 
its share of world trade in 
manufactures. 

The severity of the manufac- 
turing downturn In 1980/81 
reflected an accumulation of 



PART SIX 


problems over many years. It is 
widely accepted that overman- 
ning was rife and that the 
quality of management was 
poor. The sector was in no posi- 
tion to weather either a world 
recession or an overvalued 
exchange rate. The interesting 
question is whether the sector’s 
performance has since 
improved significantly. 

The Thatcher regime's claim 
that it has rests mainly on 
improved profitability and pro- 
ductivity figures. The output 
recovery from the 1981 nadir, 
after all, was not startling by 


international standards. 

However, the productivity 
turnaround is more impressive. 
Output per head in British 
manufacturing grew at an 
average annual rate of $.5 per 
cent between 1979 and 1986— 
a huge improvement on the 
trend increase of O.S per cent a 
year between 1973 and 1979. 
Plant closures, less obstructive 
unions and better management 
have thus almost restored the 
productivity growth enjoyed in 
the “ Golden Age” before the 
first Opeo oil shock: output per 
head in manufacturing rose at 
an annual rate of 3.8 per cent 
between 1964 and 1973. 

““ Sceptics attributed much of 
the rise in output per head in 
the early recession yeans to the 
so-called ' batting avenge” 
effect. The haaksuptcy of the 
least efficient pasts of industry 
raised the overall productivity 
figures just as the dropping of 
the scores of a cricket team’s 
tail end batsmen raises -its over- 
all batting average. 

The force of this criticism has 
recently been sidretantially re- 
duced. Higher productivity 
growth has survived manufac- 
turing industry’s transition from 
contraction to expansion and 
thus must reflect improvements 
in management and working 
practices. And whole it is true 
that most industrial countries 
have enjoyed a rise in product- 
ivity growth in the 1980s, the 
improvement relative to the 
1970s has been especially 
marked in the UK. 

Higher productivity has trans- 
lated into substantially higher 
profits. The Bank of Engl a n d 
calculates that pretax real rates 
of return in (British industry 
(excluding fche North Sea) have 
risen from a -trough of 3 per 
cent in 1981 to about 9 per cent 
Profitability in much of manu- 
facturing is thus dose the 
levels enjoyed in the late 1960s. 

Two caveats, however, are 
necessary. First, some of the 
improvement is no reflection of 
manufacturers' own efforts. 
Companies have enjoyed big 


I I r i i i i i i r. i . i i i i i i i 

1979 81 83 85 87 1979 81 83 85 

, • • ■ i i • i > i • i < i i i i i 


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windfall gains in the 1980s as 
a result of extraordinarily de- 
pressed commodity prices which 
have greatly reduced the cost 
of raw materials. 

Second, comparative figures 
compiled by the Organisation 
for Economic Cooperation and 
Development suggest that real 
rates of return in British manu- 
facturing are still low by inter- 
national standards. Return s of 
under 10 per cent In the UK 
compare with figures of 20 per 
cent In Japan and the US, 
around 15 per cent in West 
Germany and about 13 per cent 
in France. 

Those still bearish about 
Britain's industrial future worry 
particularly about the composi- 
tion of the manufacturing base. 
The Midland Bank study sug- 
gests that the higher the 
"research Intensity” required 
in a sector, the faster 
British companies are losing 
ground. 

In the so-called high- research 
intensity sector (which includes 
data processing, electronics and 
instrument engineering), the 
ratio of imports to home de- 
mand rose from 29 per cent in 
1975 to 54 per cent in 1985. 
In medium research intensity 
industries (such as rubber pro- 
ducts and me chanical engineer- 
ing) import penetration rose 
from 19 per cent to 28 per cent 
F inally , in low research Inten- 
sity sectors (such as food and 
textiles) import penetration 
rose from 21 per cent to 26 
per cent over the period. 

The tendency for the techno- 
logical content of manufactured 
imports to rise relative to that 
of exports has led to jibes about 
Britain’s “ no-tech " future. 
Earlier in this decade it also 
led ihe National Economic 
Development Office to speculate 


in internal papers as to whether 
the UK might be heading for an 
industrial status mid-way 
between that of developed and 
developing economies. 

Since high technology pro- 
ducts also tend to be high value- 
added products, the shifting 
technological content of imports 
and exports may have acceler- 
ated the long run deterioration 
of Britain's balance of trade In 
manufactures. 

The deterioration has been 
rapid during the Thatcher 
years: a surplus of £3-6bn in 
1980 turned into a deficit of 
£4.8bn by 1983 and a shortfall 
of £8-5bn last year. 

The emergence of a sizeable 
deficit on manufacturing trade 
in the country which led the 
Industrial Revolution has 
sparked a public controversy 
about ” de-industrialisation ” 
and its effects on the balance 
of payments. 

The argument is that given 
import and export trends in 
manufacturing, the British eco- 
nomy will not be able to grow 
at the 2} to 3 per cent re- 
quired to stabilise unemploy- 
ment without running into ser- 
ious balance of payments diffi- 
culties. Estimates of the likely 
manufacturing trade deficit by 
Ihe mid-1990s vary consider- 
ably: economists at Cambridge 
University last year suggested 
it might be as much as £23bn 
in 1985 prices. Whatever the 
figure, tiie worry is that the 
bole will be too large to be 
plugged by income from over- 
seas assets and invisible earn- 
ings. 

One way to maintain growth 
and keep the current account 
in check might to be accept a 
progressive devaluation of the 
exchange rate. But tills would 
eventually put the Govern- 
ment’s anti-inflation strategy 


under intolerable strain. 

The recent revival of confi- 
dence in manufacturing — asre- 
ported in surveys by the Ccw- 
federation of British Industry 

hag only slightly modified this 

rather gloomy outlook. There 
Is some evidence that British 
companies are b eg i nnin g to 
raise their share of world ex- 
port markets from the trough 
reached in 1981 (this, at least, 
is what the volume as opposed 
to value figures suggest). On 
the other hand, there is no sign 
of a slowdown in the penetra- 
tion of imports. 

If Britain is to maintain both 
a reasonably firm exchange 
rate and a manageable current 
account deficit in the medium 
term, it may have to settle for 
slower growth than that en- 
joyed in most competitor coun- 
tries. This conclusion is not 
vitiated by the UK’s recent 
Spurt of growth which has been 
achieved on the back of two 
Unsustainable trends — the 
large devaluation of the pound 
and a sizeable deterioration of 
the c ur re n t account. 

Does the shift in the struc- 
ture of output from manufac- 
turing to services matter in 
some broader sense? The Gov- 
ernment's critics are certainly 
wrong to argue that the pro- 
duction of tangible objects is 
somehow superior to the pro- 
vision of services. Indeed, since 
objects are desired because of 
the services they can provide, 
it is arguable that the primary, 
purpose of economic activity is 
to supply services of various 

lri Twin 

That said, there are some 
pragmatic reasons fbr wonder- 
ing whether the relative de- 
cline of manufacturing has gone 
too far in the UK. As indus- 
trialists have pointed out, the 


demand for many business and 
financial services is closely 
linked to the health of the 
eoods-producing sector. And, as 
discussed above, the composl- 
itional change is likely to pot 
strain on the balance of pay- 
ments If only because a much 
smaller proportion of services 
the n manufactured goods, is 
tradeable. 

In the US, the debate about 
living standards and M compe- 
titiveness" has also prompted 
economists to examine value- 
added and wages in different 
sectors. It seems that in dif- 
ferent countries and in differ- 
ent historical periods, manufac? 
taring sectors have consistently 
been able to remunerate work- 
ers of a similar quality better 
than service industries. 

The moral seems to be that 
if the US wants to raise living 
standards and to provide more 
better paid jobs, it will have:' 
to revive its manufacturing in- 
dustry. Services provide a lot 
of jobs but often not particu- 
larly attractive ones. Britain 
may have to learn the same 
lesson. 

Certainly, the notion that a 
shift towards services is a sign 
of a particularly advanced 
u post-industrial ” economy has . 
gone out of fashion. The share 
of manufacturing in GNP may 
have fallen to around 20 per 
cent in the US and UK. But in 
two of the world’s most success- 
ful economies— Japan and West 
Germany — it is still around 80 
per cent- the sort of ratio the 
Anglo-Saxon economies enjoyed 
In I960. The relative failure of 
manufacturing in the Thatcher 
years may yet have bleak im- 
plications for future living 
standards. 

Tomorrow: Joa Rognly on divided 
Britain. . 


Christopher Diuddey says the nation cannot live by economic self-improvement alone 


T HOSE WHO keep a close 
eye on the leader column 

urill slmaHv lrnnur flint. 


Come back Mary Wilson, all is forgiven 


will already know that, VU1UV MUVA XYJLCUL Y Y Y MU JLU AVI U v VU . 

according to the Financial J 

Times’s own reckoning, Mrs ..... , .. 

Thatcher’s Britain turned the sterling and in the equities of our national life. What shall That end is the provision of filthy city centres (has the art Book publishing, whether of 
comer some time ago: n nem- market It seems that it proSt a nation if it gain every a civilised life for as many of pavement drainage actually fiction or text books, is another 

ployment figures are falling; ThatchepLsm is, at last, begin- economic indicator but lose its citizens as possible, and some been lost, as the art of harp- success story with an nnpreflk 

there has been upward pres- ning to work. soul? It would surely be des- would argue that, measured In making was nearly lost a few sxve exp ort record. British 

sure on the pound, interest Yet it is, perhaps, some perately rad if, in the obsessive these tersas, the Thatcher years years ago, for lack of practice?) orchestral music is admired and 

rates are down, the inflation indication of the change that effort to put the economy and have resulted n^r In advance to the disappearance of unxver- envied around the world, and 

rate has remained low, state has been wrought by “The industry to rights, we lost sight but retreat sity chairs and entire university British session mu sici a ns -— 

industries no longer need bail- Thatcher Years "that the econo- of the fact that industries and The evidence is there, from departments because of budget orchestral and pop — are intei^ 

ing out, industrial disputes are mlc indicators have come to be economics are not ends in them- the puddles on the undrained cuts and, so far as one can tell, nationally regarded as the best; 

few, there is confidence in seen as the be-all and end-all selves but means to an end. concrete “walkways" of our sheer lade of Government tolk to American record pro- 

interest ducers and they say with 

It would seem unfair to Maine tautological awe: “ These British 

i f- - - • =s al the British people as a whole musicians, they can all sight 

for this slide toward? the read first time! 

This advertisement compiles with the requirements of the Council of The International Slock Exchange of the United Kingdojn and philistin e; it looks more lik e a Foreign companies come to 

the Republic of Ireland Limited and does not constituie an offer of, or invitation to subscribe for or purchase, any securities. fault of central government Britain to use British musicians, 

than a national malaise. The just as foreign film makers flock 
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Edward Heath may not have the talents of our film tech- 
been a cultural paradise, but nitians. Europeans come here 
tfaroug^Tut those years — in fact for post-production work on 
throufelaout living memory — commercials, Americans come 
British government has given a far special effects (in which 
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humanities and, more surpris- whether far Supermen or the 
m giy. t o science, than they have latest deep-space saga. 

■■ m _ . . received during the Thatcher The biggest name in film 

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London EC2R7AN 


30th March, 1987 


joke, but at least in those days 
10 Downing Street had aspira- 
tions, however slight, towards 
artistic activities. 

There was a time even within 
the Thatcher era when those 
attending book launches, 
theatre first nights, gallery 
openings and the like, could 
expect to see the Government 
represented. You would often 
bump into Norman St John- 
Stevas or Lord Gowrle, or even 
both. Indeed you still do today, 
but the teHing point is that they 
are no longer In the Cabinet. 
You rarely if ever see current 
Cabinet Ministers at such affairs 
now. At a technology bash, yes: 
when I attended the launch of 
Soparchamiel at Iimehouse 
studios in the London Docks not 
so long ago I found myself chat- 
ting vTth the Prime Minister 
herself. She and her husband 
did of course make one modi 
reported visit tq Covent Garden 
to see Mir Domingo, but you 
could attend a whole, year’s 
supply of arts parties of the 
same size as the Superchannel 
affair without ever finding Mrs 
Thatdier, Mr Thatcher, or a 
single current Cabinet Minister 
present. 

Does it matter? Very much, 
sorely. Even measured by the 
Government’s own commercial 
criterion, the arts represent one 
of those rare areas in which 
Britain can boast an extra- 
ordinary success story. 

In the fine arts the world’s 
top auction houses are British. 
In theatre there is not another 
centre in the world to compare 
to London, not only in terms 
of variety and success on the 
home front but in export terms. 
How many French musicals on 
Broadway can you name to com- 
pare with Evita, Cats, and Star- 
light Express? Even the one 
with a French title and a French 
author — Leg Mlserables — is 
solidly British. 


/nu uiowrci vxacai, aiuuum 

is now considered the place to 
be, whether because of major 
undertakings such as When 
The Wind Blows or because 
the cutting edge in new style 
and technique is now in Lon- 
don's Soho, tucked away in 
nooks and crannies among a 
burgeoning ant-heap of young 
independents. 

Even in television pro- 
grammes, a business where we 
tend to be all too conscious of 
imports, the British export 
record is pretty impressive. 

Though the sheer number of 
programmes going abroad may 
not be as high as the number 
coming in (from the US, almost 
entirely) the annual value of 
exports has frequently exceeded . 
that of imports. 

So even if you look at the 
arts world solely In Thatcherite 
terms of market economics; you 
find It compares outstandingly 
well with virtually any other 
major British enterprise. 
Indeed, while Britain’s inter- 
national influence in military 
and industrial terms has de- 
clined rapidly since the Second 
World War, her stock in the 
arts has risen and risen. 

Mrs Thatcher and her col- 
leagues can, In fact, claim 
credit for this, arguing that, 
far from being a bad thing, 
their decesion to stay away 
from the arts world is a 
shining example of their general 
policy of reducing inter fe rence 
from the state and leaving the 
enterprising to prosper. Cer- 
tainly it has frequently been 
said that the freelance film 
technician or the programme 
producer who gets out of the 
BBC to go into independent pro- 
duction is the very model of 
a modern Thatcher marketeer. 

But a hands-off policy from 
the Government In economic 
terms Is one thing; a failure 
to appreciate and support the 


arts for their own sake is 
another. Most members of the 
Royal family seem more 
interested in horses and guns 
than in ballet or painting, yet 

tilB arte WCfllVP VMnMenpahW 


more moral support from the 
Royal family than from the 
Government. 

Though Princess Diana's per- 
sonal preference may he for 
Duran Duran, she is quite cap- 
able of looking genuinely 
interested throughout an entire 
performance of Carmen. Could 
you say as much for Edwina 
Currie? The royals frequently 
attend orchestral concerts, film 
previews, ballet and choral per- 
formances. The same cannot be 
said for members of the 
Cabinet. 

ft is significant fa discover 
mat tiie great majority of 
Cabinet members includin g 
Norman Fowler, Geoffrey 
Howe, Nigel Lawson, Norman 


Tebhitt and even fanner 
Arts Minister Paul Channon 
leave the “Recreations” space 
on their “ Who's Who” 
forms blank. Kenneth Baker 


r — o*-™ •* uiteueciuu 

heavyweight with his recreation 
of collecting books.” The 

Prime Minister fists her recrea- 
wons as music and reading; 

SSSi5. res S ifaly ’. ,ljl * domestic 
contort^ Not a single member 
of &e Cabinet (hat I have man- 
Jfrack down even 

mentions theatre, ballet, jazz,. 

Mere, poetry, scripture! 
roouern dance or any other arts 
as a recreation. 

The valued fumta going 
arts 1 Purse infertile 

arra and sciences may have 

Pretty much the same - 
flying the Thatcher yeare. But 

wh5oh t*iese 

of our public life 
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^nazxdal Times Monday Mar ch 30 1987 




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p-’:s*s£ 



J if .* 


THE MONDAY PAGE 



11 



Time to put a stop to displacement activity 


JtTOfFLE Nnm 


A NT recent vUtn ta 
Washington will not 
Have been surprised at 
ute R eagan Administration's 
tteasfan to impose punitive 
“actions against the Japan- 
ese tor allegedly rnfah - 


trading practices. The writing 
m w wall for some 
The worrying feature ta 
tost we are witnessing just 
®« we example of mis- 
Jjwwted policy, indeed, the 
JgfWegtets have anflmr 
jwojjhrase for it. They can 
JJjJJjjJycwaeot activity: doing 
when yon can- 
•"**** problem. 

The US budget deficit to as 
nnwh a case in point as the 

HS *** American trade 
®fefiett most be accompanied 
•** attach of comparable 
«pmr on the budget deficit. 
2*®®* It has been substan- 
tlatty financed by private 
foreig n eapttsl-snost notably 
from the much «n | Hj pm l 
Japanese. The foreigners <**"■ 
not go on Bmnirtng the deficit 
unless the US runs a trade 
deficit to provide them with 
the requisite dollars. 

Since Janies Baker took 
over as Treasury Secretary 


(he Afaiin^tpriiin him pur- 
sued the sensible* if painless, 
policies of talking down the 
dollar Mij ■fMug otter 
developed countries to ex- 
pand their economies. But 
they alone will not suffice; 
in fact there b a palpable 
risk that if the twin deficits 
are not brought down In tan- 
dem, foreign capital Inflows 
wIU dry up, US interrat rates 
will soar and private Invest- 
ment win be crowded out 
Instead of supply-side 
economics, which seems to 
mean that foreigners supply 
most of the g^isand all the 
money until the trade barriers 
come down, we would have 
orthodox finances, which un- 
questionably means less goods 
for the natives and horribly 
tear money. 

Yet President Reagan reso- 
lutely opposes any increase 
In taxes to address the bud- 
get deficit, while politicians 


on Capitol BUI are reluctant 
to contemplate the necessary 
spending cats. Instead of a 
policy we have the arbitrary 
spending cats put forward by 
the Gramm-Rndinaa-Holliags 
amendment. There ta no hope 
that these will be met this 
year. As Fred Bergsten of 
Washington's Institute for 
iatenuCtaul Economics 
neaSy pats it, Gntmm-Rudman 

embodies "process as a sab- 
stitnte for action,” which to 
another way of saying dis- 
placement activity. 

Then there are the succes- 
sive currency agreements 
forged by Nr Baker. The 
Plaza accord of September 
1985 undoubtedly made 
sense: everyone. Including 
the markets, agreed that 
dollar devaluation was essen- 
tial. Unfortunately nobody 
was agreed on bow modi. 
Hr Eater kept on talking the 
dollar down while the 


Japanese i»d German central 
banks tried to prop It up. 

In the absence of wider 
agreement on underlying 
economic policies, a currency 
agreement has only a poor 
life expectation. Last year’s 
Bater-Bflyazawa accord 
foundered shortly after birth. 
And now the markets are 
busily testing the latest 
attempt engineered by the 
Group of Six In Paris. They 
anfomirfl rally aanniA that tf 

he expresses concern about 
protection, he wants Ihe 
dollar to fall against the yen 
even if he says nothing of 
the kind in public. 

So what hope b there of 
some wider agreement on 

hmri<inmnhili! [ to rnicnm flint' 

national economic decisions 
are internationally compat- 
ible in an Increasingly inter- 
dependent world? in the ran 
up to the Venice summit we 
will be hearing more about 


so-called objective Indicators, 
whereby (be summit countries 
are supposed to produce fore- 
casts for the main economic 
variables which the Inter- 
national Monetary Fund is 
then meant to check for Inter- 
national compatibility and, 
subsequently, implementa- 
tion. 

This threatens to become 
the biggest displacement acti- 
vity of all, because the pro- 
duction of no less than 10 
indicators per country en- 
sures that there will always 
be one Indicator or another 
to provide an excuse for 
Inertia. 

Finally, we have the 
Baker plan to encourage in- 
creased private bank lending 
to Latin American debtors. 
At 9201m the target for pri- 
vate Sows always looked 
small fn relation to potential 
needs; and any solution that 
simultaneously increased the 
burden of debt, while re- 


tire Banks to advance 
WOnld hnWimHaiftly 
be quoted at a huge discount 
in tire secondary market, in- 
evitably had g gtmenek look 
abont_It. The shortcomings 

of fiiH f make-do-and-mend 

aproach have now come home 
to roost as Brazil opts for a 
unilateral moratorium. And 
Washington Is full of gossip 
about grotwng animosity be- 
tween Mr Baker and Citicorp 
chairman John Seed. 

Hr Baker told me last week 
that his plan ta really more of 
a concept, and that it is wide 
enough to embrace a host of 
variations, including such 
fas hionab le things as debt- 

equity swaps. These would 
link the bankers’ returns 
more directly to the debtors* 
economies, while taking the 
debtors off the interest rate 
hook. Unfortunately the 
hankers are not ever the 
moon about them: they have 
accepted only to a limited 


extent the recent swap pro- 
posal from the Philippines. 

Lest this sounds *ddnly 
negative, let me add that I 
am a pronounced Baker fan. 
Unlike his predecessor, the 
unladen ted Donald Regan, 
he quickly Identified the need 
to address the trade conse- 
quences of an overvalued 
dollar and to maintain 
economic growth through 
cooperation while the United 
States and Latin America 
tried to cope with their res- 
pective debt burdens. Bis 
problem has been that the 
solutions lie so much fn other 
people's hands. 

So what we have had from 
the US Treasury over the 
past (wo years is. In pla'/i 
English, improvisation; and 
It Is beginning to wear a little 

t hro . Let ns hope that the 
dollar devaluation works fast 
enough to pre-empt still more 
pressure for protection from 
Congress later this year. 


INTERVIEW 


The 24 -carat 
democrat 

Bettino Craxi tells John Wyles that he is 
neither an extremist nor a moderate 


I T IS AN awkward question 
to put to a Prime Minister, 
even one who has resigned 
ms office and is keeping things 
ou a care and maintenance basis 
until a new government is 
formed. But the Italian view of 
Bettino Craxi is one of respect, 
among his Socialist Party sup- 
porters even of admiration, 
tinged with a suspicion that the 
man Is a mite too fond of 

S wer and possibly a little care- 
ts about how he attains it 
Is he offended, then, by tire 
cartoonists’ fondness for dress- 
ing him in boots and a blade 
shirt and presenting him in al- 
together Mussolini -esque poses? 

"No, I am not offended, I 
am used to it. There is no re- 
semblance between me and the 
late dictator and this must be 
understood. I don’t say this to 
disparage him, he was an ex- 
tremis*. he was not a democrat 
X am not an extremist, nor am 
I a moderate. I am a democrat, 
a 24-carat democrat." 

As time is limited for his first 
unscripted interview with a 
foreign newspaper since becom- 
ing Prime Minister 3} years 
ago, there is no opportunity to 
probe his reluctance to dispar- 
age the late dictator. 

It may well be the result of 
a more detailed knowledge of 
history than is commonly attri- 
buted to this complicated and 
uncommonly closed man. Al- 
though he is Italy’s first Social- 
ist Prime Minister and has led 
the longest-serving p ost-w ar 
government, his countrymen 
seem to have only the vaguest 
Impression of his personality 
or, indeed, of the experiences 
which formed him. 

It is, of course, difficult to 
be Italian and not have a sense 
of history, particularly if you 
work out of the Palazzo Chig, 
a 16th century baroque budd- 
ing, once the family home of a 
Pope, which has boused govern- 
menl offices since the First 
World War. 

The corridors looking on to 
the central courtyard are lined 
with giant tapestries and oil 
paintings and in the 2°°* 
elegant room used for 
of the Italian inner Cabinet 
there sits the Prime Minister in 
front of an exceedingly 
romantic painting of Italy£ 
romantic wartor-POlM- 
dan, Giuseppe GanbaUU. 

Mr Craxi has never been awe 
employ toe elaborate cir- 
cumlocutions favoured by 
Italian politicians. On the morn- 
ing after Christian Democ^ 

rss^sHSS 

most understand, ne 


"That I cannot say anything 
about the political crisis before 
I speak to my party’s Congress.” 

With the rules thus estab- 
lished, he reveals his frustration 
and disenchantment with the 
system within which he con- 
demned to operate. While proud 
of his record for prime minis- 
terial longevity, he laments 
that the system is "predisposed” 
to encourage political 
Instability. 

He wants to make a start on 
resolving this by introducing a 
directly-elected head of strje, 
who might In time come to re- 
semble a French president. 
“ But it is a difficult task and I 
cannot any .forecasts, 

given that it has not so far 
been possible to remove some of 
the most glaring deformities, to 
particular, the secret vote. 

‘nils allows a mischievous 
anonymity to disgruntled and 
dissident parliamentarians who 
vote against governments they 
are nominally supporting. 
Wanning to his theme and 


• PERSONAL FILE 

1934 Bom hi Mb n. 

1959 Married Anna Maria 

Meodnl 

1952 Became member of Milan 

regio nal executive or 
Socialist Party. 

196000 Councillor and Alderman 
of Milan. 

19*8 Elected to Parliament. 

1976 Became secretary general 

of Socblht Party. 

1963-87 Prime Minister. 


drawing heavily on his second 
mentholated cigarette, he points 
out that "there Is no other 
great parliament to the world 
which allows a secret vote on 
legislation." 

Never slow to display bis 
animosity to the Italian Com- 
munist Party, which in 1983 
took 33 per cent of the vote of 
the Socialists’ 11 per cent, he 
says the Communists remain 
strong defenders of the secret 
vote "Chirac can govern in 
France with a majority of three 
and in Italy, with a majority of 
50, you can go to the Parlia- 
ment without knowing whether 
you will come out with your 
akin 99 

Bat doesn’t his preference 
for a directly-elected president 
arouse opposition because it 
appears designed to bea vehicle 
tor his personal power? "If it 
was accepted by the other 
parties and they asked me to 
stand aside. I would b e ve ry 
happy to do so for a reform 
winch would help Italian demo- 
cracy." he says, bra ndi s hing a 
satisfying ace which he knows 
will never he played. 


Having won the leadership 
of a deeply dispirited party in 
1976 at the politically tender 
age of 42, Craxi then battled 
for seven years to exploit his 
pivotal power to block the for- 
mation of any non-Gommunlst 
majority. Ofice in the Palazzo 
Chtgi, however, Craxi made no 
secret in 1983 of his initial dis- 
enchantment with tire con- 
straints on Prime Ministerial 
power. 

Evidently not wishing to 
dwell longer on the subject of 
personal power, he seems re- 
luctant to say whether more 
mature experience has changed 
fata view. 

There are few power buttons 
to push, he observes, uncon- 
sciously pressing one to order 
a glass of water, and the in- 
stitutionally inhibiting factor ta 
the total- dependence -on a Par- 
liament whose procedures are 
responsible for the tardiness of 
everything the government 
does. 

The essential question, of 
course, is what is power for? 
For the Socialist Party which 
he joined as a 14-year-old in 
1948, it was for the creation of 
a Marxist state which was bare- 
ly distinguishable from the 
Communist blueprint. 

His choice of party was al- 
most an automatic consequence 
Of family background. His 
father had long been a Clandes- 
tine member of the Socialist 
Party and played a leading role 
In the liberation of Milan from 
the Fascists. Recalling the 
chaotic period of anti-Fastist 
strugle in Milan reveals an un- 
expectedly sentimental Craxi. 

The eyes water behind those 
large, owl-like spectacles as he 
remembers the despatch of the 
first car from his father’s 
offices, bearing the red flag as 
a si gnal tO the Citizens of Milan 
to rise up against the Fascists. 
"Boyhood memories are much 
sharper than those of recent 
events," he says, a trifle huskily. 

The young Marxist devoured 
the first Italian edition of 
Lenin’s works freshly delivered 
from the Moscow publisher. But 
dampening disillusion arrived 
in his early twenties with a 
trip to Prague in August-Sep- 
t ember 2956. “With horrified 
and astonished eyes. 1 saw the 
reality of a police state ami 
then, a few weeks afterwards, 
came tire Polish uprising and 
Hungary.” 

Thereafter, his intellectual 
energies and political savvy 
were devoted to encouraging 
tire Socialist Party to distance 
itself from the Communists. 
His election, 20 years after 
Hungary, set the seal on the 
process 



Having shed a lot of its old 
dogma, " the Italian Socialist 
Party is the party which' has 
struggled hardest to understand 
the relationship between the 
Socialist movement and post- 
industrial society.” 

It is a party which remains, 
nonetheless, dwarfed by the 
Communists who, in the judg- 
ment of many, have abandoned 
Marxist principles in favour of 
many of the approaches that 
Mr Craxi favours. Why does he 
not collaborate with them to 
create a genuine left-wing alter- 
native to governments domin- 
ated by Christian Democrats? 

Clearly the idea fascinates 
intellectuals and journalists 
more than him. The Commu- 
nist Party needs to ch a n ge it- 
self, be says, curtly. 

After establishing himself as 
the dominant figure in Italian 
politics, Mr Craxi has not been 
and Is not inhibited by his 
party's modest share of the 
vote. "History is often made 


by minorities," he says, with an 
echo of his triumphant observa- 
tion that “ you can do a lot with 
10 per cent,” made when he 
captured the Socialist leader- 
ship as head of a faction with 
just that support in the party. 

He brought the same reser- 
voir of self-confidence to the 
premiership, despite having no 
previous experience of govern- 
ment 

He thinks other countries are 
abandoning their stereotypical 
views of Italy aa all sun and 
spaghetti. "We now export less 
spaghetti and more robotics,” 
he says, with evident pride. 

What has his personal con- 
tribution been? The nautical 
metaphor comes to band of 
Italy as a large ship and him- 
self as the admiral, "but cer- 
tainly if I had not had good 
officers and seamen, I would not 
have got anywhere.’ 

The most difficult moment, he 
says, was the confrontation with 
the Communist Prrty and its 
trade union supporters over his 


determination to cut the Scala 
Mobile system of wage 
indexation. 

The subsequent referendum, 
in which Iatlians voted for the 
Craxi position by rejecting what 
would have been modest pay 
rises, was a delicious moment of 
triumph. 

"I didn’t know how things 
would go. I had no doubt about 
what would happen if we lost 
I said just before the vote that 
one minute after a negative 
result, I would resign. There 
were those who said the referen- 
dum would change nothing — 
this Is not so, it changed the 
face of Italian politics.” 

And for the future? “I can’t 
read a crystal ball. We have to 
close this Parliament and see 
what the country thinks." Un- 
conscious, quite probably, but a 
hint that Craxi does not want a 
Christian Democratic-led govern- 
ment to emerge from this crisis, 
but rather a chance to test his 
record and authority in early 
general elections. 



Recognising a 
basic 


T O LISTEN to some of the 
public pronouncements 
(even from otherwise 
sensible people) on the case 
of the 27-year-old severely 
mentally handicapped girl, for 
whom sterilisation has been 
prescribed by a local authority 
on expert medical advice and 
sanctioned by the Court of 
Appeal, is to be regaled by 
something out of Samuel 
Butlers’ “ Erehwon.” 

There is a real danger that 
the rhetoric and emotive 
language could obscure the 
socio-legal problems. If only 
for that reason, the grant of 
leave to the Official Solicitor to 
appeal to the House of Lords is 
welcome- The full hearing 
takes place on Thursday and a 
prompt judgment is expected. 

The Court of Appeal has con- 
cluded that since the evidence 
has demonstrated unanimously 
that all forms of contraception 
would be either unsuitable, in- 
appropriate, dangerous or not 
effective, sterilisa- 



ippropriate, 
completely t 
don was the 


comj . 

tion was the only answer in the 
best interest of the girl. With- 
out constitutionally guaranteed 
civil rights. English judges are 
free to arrive at solutions for 
highly sensitive social situa- 
tions without invoking high- 
sounding principles. But this 
is a case for tire conrfs acknow- 
ledging tiie presence of a basic 
human right. . 

Procreation is a civil right 
fundamental to the existence 
and survival of the human race. 
The power to sterilise generally 
in the hands of evil or even 
misguided people, can cause 
racial groups, which are inimi- 
cal to the dominant group in 
society to wither and dis- 
appear. We need to look no 
further than to the doctors at 
Auschwitz who eradiated the 
ovaries of Greek Jewesses and 
Rian performed ovariotomy 
as part of the experiment to 
achieve the Final Solution. But 
here the concern is solely with 
a particular Individual with no 
other purpose in mind than 
her immediate and future wel- 
fare. 

The Individual who is steri- 
lised against his will or in the 
absence of informed consent is 
nevertheless similarly deprived 
of a basic liberty- Such a posi- 
tion demands the strictest 
scrutiny of any law which 
would permit the infringement 
of the civil right But tire right 
is not absolute. In 1927 the 
United States Supreme Court 
sustained a law permitting 
sterilisation of an imbecile, a 
person with definite and 
observable characteristics which 
had persisted through three 
generations and afforded 
grounds for the belief that it 
was transmissible and would 
continue to manifest itself in 
generations to come." That 
decision confirmed the power 
to sterilise for biological 
reasons. 

Mrs Justice Heilbom, in a 
1976 judgment referred to the 
right of every woman to repro- 
duce. But the reproductive right 
Is not to be casually assumed as 
a right for its own sake. 
Parenthood carries with It great 
responsibilities. Procreation is 
one thing; motherhood another. 

Some mentally handicapped 
people may, under the most 


JUSTINIAN 


favourable extended family 
circumstances care for them- 
selves. To care also for a child 
through babyhood, infancy and 
childhood, however, will almost 
always prove an overwhelming 
burden. Where then do the 
best interests of a severely 
mentally handicapped girl lie? 
The decision points inexorably 
to authorising an admittedly 
extreme act but one which will 
have the beneficial effect of 
permitting her to live in the 
Community 

But the case incidentally 
throws up a disturbing in- 
adequacy in the law. The 
speed with which the case has 
been rushed through the courts 
has been to provide the legal 
stamp of approval before the 
girl's 18th birthday in May. 
After she at tains her majority. 
Sterilisation would not be 
possible without her consent 
And it is difficult to envisage 
that her physical submission to 
tiie operation could ever be 
regarded as consensual. 

The Mental Health Act 1983. 
like its predecessor the 1959 
Act (which ushered In the 
modern approach to mental dis- 
orders) authorises treatment 
only for a mental condition of 
toe patient. It is unconcerned 
with physical health. The Court 
of Protection, moreover, deals 
solely with affairs of property. 
There is no provision in the 
law for guardianship of ment- 
ally handicapped adults. Ward- 
ship stops at 18. Thus if a 
patient is unable to give an 
effective consent, there is in 
truth nobody who could give it 
on the patient's behalf. 

In practice if toe treatment 
Is straightforward — for example 
tire removal of a person’s tonsils 
or appendix — and the dose 
relative caring for the mentally 
handicapped person consents, 
medical treatment will be given. 
Where the treatment is not 
therapeutic as with sterilisa- 
tion, the operation will 
ordinarily be withheld. There 
are other difficulties un- 
connected with medical treat- 
ment A mentally handicapped 
adult may need to be 
directed where he or she is 
to live, with whom and how not 
to be exploited socially. 
Divorced or separated parents 
of a mentally handicapped adult 
may continue their personal 
quarrel through their offspring. 

The case before toe House of 
Lords therefore provides a 
Unique opportunity for some 
positive judicial promptings for 
Governmental and Parliamen- 
tary action to protect mentally 
handicapped adults. 

"Buck v Bell 274 VS 200 
(1927) 



ationat Australia-™. Bank 


for responsive corporate financing. 

Call Geoff King (01) 606 8070 


6-8 Tokenhousel&id. London, ECR2 7AJ 


V 


■— f~ 











Tokyo Trusts A 


I 


NOTICE OF ANNUAL GENERAL MEETING 


$200,000- 


$150,000 « 


$100,000- 


NOTICE IS HEREBY GIVEN that the Eighteenth Annual Meeting of 
the Company will be held at IS, me Petitot, Geneva, Switzerland on 13th April, 
1987 at 12.00 noon for the Mowing purposes:- 

1. To receive the report of the Directors and the Audited Accounts for the 
year ended 31st Decembet 1986, and to declare a dividend. 

2. To confirm the appointment of Mr John Rerjyi, Mr Hubert Grosperrin, 
Mr Lutien Fischer Mr Jacques Seydoux and Mr Michael Chariton as 
Directors of the Company, and fix their remuneration. 

3. To authorise the Directors to fix the remuneration of the auditors. 

4. To transact any other ordinary business of the Company 

By order of the Board, 

MrsRomane'V&lker 

Secretary 

Notes:- 

1. A member entitled to attend and vote at the meeting is entitled to r- 
appoint one or more proxies to attend and vote instead of him. A proxy 
need not also be a member: 

2. The quorum for the meeting is two shareholders present in person 
or by proxy 

3. Each of the resolutions Set out above may be passed by a ample 

majority of the votes cast thereon at the meeting. — 

Copies of the 1986 Report and 
Accounts are available from: PT 

19 Avenue d’Ostende, I | I j 

Monte-Carlo, Monaco. I I I I 


fe s M s Is] M M § i 


'UdoeoTmitul investment of *U.S.S10,250 
in Jannaiy 199 asnmiiuaU dividends 
invested in Tbkyo That S-A. U^S20 7, 0 3L 



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drawn for me redempdon instalment due 1st May, 1987. . 

The distinctive numbers of the Bonds drawn in the presenceofaNotaryPuMc, are asMows: 


976 1006 


1906 1919 


2670 2699 


3156 3196 3227 3250 


3824- 3840 


4350 4363 


6089 6100 6110 6123 6133 

6345 6371 6393 6403 6413 


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9670 9682 9690 9703 ‘ 25 9635 

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On 1st May, 1987 there wffl become dueandpayableupon each Bond drawn for redemption, the 
principal amount thereof together with accrued interest to said date at the officeo^-^ 1 

S.G. Warburg & Co. Ltd. . 

Paying Agency, 6th Floor, 

1 Finsbury Avenue, London EC2M 2PA 
or one of the ocher paying agents named on the Bonds. 

biterest will cease to accrue on the Bonds Med far redemption on and afier 1st Mav 1987 and 
Bonds so presented for payment must have attached all Coupons maturing afta umdareT^ 
US$2,000,000 nominal amountof Bonds willtejnainoutstancflng afro'lst May, 1987 . 

ptS^Sfo? payment?”^ ^ ItxieZDiXkm 00 *** stated below hare not yet been 

1st May, 1986 

353 570 2662 2730 2766 2803 4790 7975 7986 
1st May, 1965 
2805 

1st May, 1983 
2744 

NS. The Bond No. 2780 has become prescribed. 

No further payment will be made orr this Bond or Coupons therefrom. 


O* 1 


30tb March, 1987 
































5* 


FinlmctaI13ines Monday March 


ance 


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Monday March 30 1987 


CONTENTS 


Economy; Companies in West Berlin; Profile: Dr Gu enter Spur, high 
priest of technology; Venture Capital 2 


Mood of Berlin 


Berliners are hopeful 
jKmfoJr 1 tnat warmer relations 
* I between East and West" 

f Germany will lead to th¥ 

' wiHW i TO g first official contacts 
between East and West Berlin s ince 
1948. West Berlin's leadership would 
Itketospeed up detente which began 
with the four po wer agreement en Fter. 
lin in 1971. testie Coiitt.Berlin Cor- 

respondenCreports “ 

Political smog 
begins to lift 


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' -** 1 ’ ->• ,3V* ' 

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Cultim 

Profiles: Mayor of West Berlin. Mr Eberhard Diepgen 
Herbert von Karajan 
Goetz Friedrich 


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V. 


HEUNTFICATION MAY or may 
not lie at the «d of the long, 
dark tunnel, but on the surface 
.the ice between the two Ger- 
rnanys is hearing and cracking. 

Sceptics are quick to point out 
that the thaw is a periodical 
one. It is largely the product, 
they note, of Moscow's techni- 
que of alternately scolding unit 
wooing West Germany. This 
tune, however, there is a new 
element Fora change Berlin is 
the focal point of the political 
thaw. 

Berliners on both sides of the 
wall welcomed a recent invita- 
tion to tiie East German leader. 
President Erich Honecker, to 
attend West Berlin’s celebra- 
tion neat month of the 750th 
anniversary of Berlin. No East 
German leader had ever visited 
West Berlin and the mere 
thought of his coming through 
the wall caught their imagina- 
tion. 

Earlier, the Christian Demo- 
crat (GDU) governing, mayor of 
West Berlin, Mr Eberhard 
ZHepgen, was asked to tateuart 
- in East Germany’s official 
anniversary ceremony. The 
invitation pointedly noted it 
was in (East) “ Berlin, capital of 
.the German Democratic 
Republic.” 


‘ When the governing mayor 
was first invited late last year, 
the self-assured Mr Diepgen 
quickly spread word that he 
would accept — after, of course, - 
consulting the three Western 
allies responsible for West Ber- 
lin and the Bonn Government 
To the allies however *h»« was 
putting the cart before the 
horse. 

Senior American, British and 
French diplomats in West Ber- 
lin claimed the agile Mr 
Diepgen was about to step into a 
“ clever trap " to undermine the 
Western position that Berlin is 
still one city. They argued that 
tbqy coold not accept East Ber- 
lin as the East German capital 
without eroding their own posi- 
tion in Berlin. 

Mayor Diepgen's response 
that only the allies could change 
the legal status of Berlin foiled 
to satisfo them. Significantly, in 
his bid to see whether long- 
severed contacts could be re- 
established between West and 
East Berlin, the governing 
mayor had the foil support of 
West Germany's GDU Chancel- 
lor, Mr Helmut KofaL Mr 
Diepgen’s vision of a new Ostpo- 
littfc launched from Wwiin 
which would relegate the once- 
migbty Social Democrats (SPD) 


West Berlin 


The old and foe new by night at Breftscbeidplatz’ 


in West Berlin to political obli- 
vion appealed to the Chan- 
cellor. 

The stalemate was broken by 
a West German proposal reluc- 
tantly accepted by the Western 
allies. Mr Diepgen would invite 
Mr Honecker to West Berlin’s 
own 750th ceremony on April 30. 
He would make his acceptance 
of the East Berlin invitation 
dependent on Mr Honeckex’s 
coming to West Berlin. 

An invitation to the East Ger- 
man leader was extended early 
this month. Negotiators from 
East Germany and West Berlin 
began to wort: out the fiendishly 
intricate de tails which were all 
important ones for Mr Diepgen. 

The governing mayor, for 
example, had to make sure he 


would not be seated among 
foreign heads of state in East 
Berlin. This would underscore 
East Germany’s position that 
West Berlin is a "separate 
political unit” But if Mr Hon- 
ecker came to West Berlin he 
would attend a ceremony at 
which Chancellor Kohl and the 
West German President, Mr 
Richard von Weizshcker would 
speak. 

It would be seen as a vivid 
demonstration of West Berlin's 
links to Bonn despite the pro- 
hibition on West Germany 
exercising authority in the 
three-power city. 

In a bid to rebalance the 
equation, Mr Honecker noted 
the Lord Mayor of (East) Berlin, 
the less-known Mr Erhard 


Krack, had not received his 
invitation to the West Berlin 
ceremony. The oversight was 
intentional, however, as the 
West insists there is only one 
legally elected Berlin Govern- 
ment. that of West Berlin. This 
was also the reason Mr Diepgen 
did not reply to an invitation 
from Mr Krack to attend a meet- 
ing of mayors in East Berlin in 
June al though several West Ger- 
man mayors had accepted. 

This was but one of many 
possible factors which could 
prevent the exchange of high 
level visits from taking place. 
Another, Mr Diepgen warned, 
would be an incident at the wall 
in which East German border 
guards would shoot at an 
escapee trying to reach West 


Berlin. Only ten days ago a man 
waa shot at trying to reach West 
Berlin, evoking protests from 
the Allies and the Bonn Govern- 
ment 

If the visits took place against 
all such odds, Mr Diepgen 
hoped they would lead to 
improvements for the “ people 
in the divided city ” and, 
perhaps, the first contacts 
between the boroughs of East 
and West Berlin since the divi- 
sion in 1948. 

Before the decision to invite 
Mr Honecker, the visits to West 
Berlin by the leaders of its "pro- 
tective powers" were seen as 
the high points of the' 

anniversary year. 

The US President Mr Ronald 
B*»pn | is to spend four hours 


in the city on June 12 which, 
however, is unlikely to be a test 
of his popularity. He will be 
kept for from ordinary Berlin- 
ers for security reasons. Presi- 
dent Francois Mitterrand will 
arrive on May 11 and Queen 
Elizabeth is to visit West Berlin 
on May 28 and 27. 

By the end of the year, most of 
the Royal Family will have paid 
its respects as the Queen 
Mother will come in July and 
the Prince and Princess of 
Wales in November during the 
appearance of the Royal Balled 

Such visits, Qattering as they 
are to roost West Berliners, can- 
not mask the significant change 
which has taken place in the 
relationship between West 
Berliners and their allied occu- 
pier-protectors. Younger West 
Berliners in particular find It 

difficult to accept That the 
Allies, and not the elected city 
government of West Berlin, 
exercise sovereignty in the city-' 

The four power Berlin agree- 
ment of 1971 and the resulting 
absence of East-West crises 
over Berlin meant a generation 
grew up without experiencing 
an outside threat to West Ber- 
lin's security. Little wonder that 
West Berliners increasingly 
complain aloud when their 
sleep is interrupted by night- 
time Allied military exercises 
or by gunshots from British and 
US army firing ranges. 

Only last month, an SPD mem- 
ber of the House of Deputies 
complained that on the very day 
that cars were banned from the 
streets because of a smog alert, 
the US army allowed its tanks to 
“unnecessarily” idle their 
engines. 

It is no longer only the West 
Berlin Greens who ask whether 
the three Western comman- 
dants, in frill uniform, must 
occupy the front row at official 
functions and be addressed first 
in the mayor’s speeches. 

The Allies say they sympath- 
ise with the desire for change 
but caution that giving up origi- 
nal allied rights m Berlin would 
erode their presence in the city 
and ultimately the security of 
West Berliners. The other vital 
pillar for West Berlin, without 
which it could not survive, is the 
economic and political support 
it gets from West Germany. 
Some 52 per cent of West Ber- 
lin's budget this year of DM 
23bil is financed by the Bonn 
Government, in addition to DM 
8bn in subsidies as Well as pay- 
ment of allied non-military 


expenses in Berlin. 

West Germany also provides 
some DM 2bn annually In West 
Bezifo-nelated payments to East 
Germany. 

A bread consensus still exists 
in West Germany that West Ber- 
lin must be helped because of 
Berlin’s role as a clasp between 
the two Gennanys. Neverthe- 
less, many West Germans suspi- 
ciously regard West Berlin as a 
bottomless pit for aid and sub- 
sidies. 

West Berlin may also find it 
more diffi cult in the ftifureTto 
gain a sympathetic hearing from 
.West Germany industry. The 
generation of senior West Ger- 
man executives who knew Ber- 
lin as a capital and who worked 
(and fought) in the city as young 
men is retiring. Their succes- 
sors will not necessarily 
respond to special appeals for 
help from W est Berlin. 

A notable exception Is Mr 
Edzard Reuter, son of the famed 
SPD Mayor of West Berlin dur- 
ing the Soviet blockade, who is 
to become a co-chairman of the 
board of Daimler-Benz. Chan- 
cellor Kohl, although hailing 

from Rhin eland-Palatinate, has 
a Berlin-bdn wife ' and is 
another promoter of Berlin who 
speaks emotionally of its “ his- 
toric national talk.” 

This anniversary year will see 
a record number of West Ger- 
mans visiting West and East 


Most visitors will drive to 
West Berlin across one of the 
four autobahn routes through 
East Germany. Two are in excel- 
lent condition— one is new — 
th anks to West German pay- 
ments to East Germany to 
i mprove access to West Berlin. 

west Berlin is alsoanxions to 
get a high speed rail line 
between the city and Hannover 
in order to link np with the West 
European intercity network. 
Bonn once again will have to 
finance the lion's share of this 
project, leading the German 
Institute of Economic Research 
(DIW) in West Berlin to make a 
novel suggestion: the payments 
Bonn makes to East Germany 
for the planned rail line should 
be used to boy anti-pollution 
equipment from West Germany 
for the lignite-Aielled East Ger- 
man power stations which 
heavily pollute Berlin's air. The 
proposal was welcomed by West 
and East Berliners who breathe 
the same air — although West 
Berlin has smog alarms and 
East Berlin does not 











.v:-V- 




The year’s feeding events 



Intomctional Awflo and Vkfwo Fair BwrHn, Aug 28-Sept 6, 1087 

The largest exhibition in the world for the International consumer electronics 
sector, and a leading venue for developing contacts and sountfing out the market 
K paves the way for new media and supplies information about the work of 
the broadcasting authorities and the post office. 

Oveneaa Import Fair, Sept 30-Oct 4, 1987 

-Partners for Progress” 

international specialised trade fairfor products trom overseas. Main product fines: 
textiles, garments, leather goods, basketware, wooden products, gift Items, 
carpets, technical goods. Leacfing event since 25 years. 

Intematlml Oiwen We**, Jan 29-Feb 7, 1988 

A major international exhibition dealing with agriculture and forestry, as well as 
horticulture and the foodstuffs Industry. One of the world's leacfing exhibitions, 
displaying food products, along with items from agriculture and horticulture from 
a total of 50 countries. 

International Tourtan Exchange ITB Berffai, Mar 5-Mar K), 1988 

The world’s largest travel trade fair, with exhibitors and trade visitors representing 
every sector erf foe tourism Industries. The objective is to promote tourism on 
tm international scale, to intensify consumer information and to facilitate the 
exchange of information between travel trade professionals and to conclude 
business contracts. ^ 

International Congress Center Berlin 

One of foe worid’s great meeting places. 

vwfoitemultifunctionalfaciUttesand full-range senrfe^^e International Congress 
Sorter Bertin provides a versatile showcase for events of every size and scope. 

a lame International congress or professional meeting, a forum or 
sponsors and parttetjMnte alike find Weal conditions here. 





’Mi'' 


The Sign for Better Business 

in Germany 



Berliner Bank is one of the large 
German universal banks with excellent inter- 
national connections. Backed by total assets 
of some US $ 15 billion the group provides 

• in-depth knowledge of German markets 

• nationwide presence 

• a worldwide network of more than 1,900 
correspondents 

• a specialization in corporate business. 

For further information, please contact 
our Head Office: BERLINER BANK AG, 
International Division , Hardenbergstrafie 32, 
1000 Berlin 12, West Germany, 

Tel.: (30) 3109-0, Telex 1820144 bb <L 


Branches in Berlin (West), Dusseldorf, 
Frankfurt/Main, Hamburg, Hanover, Munich 
and Stuttgart. 

Our London Branch is active in trade 
financing, capital market and treasury ope- 
rations as well as other related services: 
BERLINER BANK AG, Berliner House, 81/82 
Gracechurch Street, London EC 3V ODS, 

Tel: (01) 9 29 40 60, Telex 884 131 bblo g. 

Our subsidiary in Luxembourg offers 
special Euromarket financing and investment 
services: BERLINER BANK INTERNATIONAL 
S A., 60 Grand Rue, Luxembourg, Tel.: 4 77 81, 
Telex 1803, bbicr lu. 


BERLINER BANK 

The Bank you should talk to 
















u 


Financial Times Monday March 30 1987 


(WEST BERUN 2) 


Subsidies and investment incentives bolster the island economy Investment 

incentives 


The high cost of success 


REMARKABLY, West Berlin’s 
“ island n economy — unlike that 
of surrounding East Germany— 
has had no energy problems or 
shortages in the succession of 
bitterly cold winters which laid 
low Eastern Europe. 

On an area of only 480 square 
kilometres, L9 million West 
Berliners torn out a gross 
domestic product which Is 
almost half that of Denmark. 
Road, rail and barge transport 
across East Germany flows 
smoothly, providing West Berlin 
with the materials it consumes 
and carrying back to the West 
the products it sells. The city’s 
eight power stations deliver all 
its electricity, needless to say at 
a high cost 

While West Berlin remains 
Germany’s largest industrial 
city it is economically cut off 
from its hinterland and has 
become an industrial enclave of 
West Germany. Before the 
Second World War, one-third of 
Berlin's output was sold in what 
Is today East Germany— now it 
is only 1 per cent 

The city has had to compen- 
sate for its distance from the 
West German market by offering 
some of the most extensive sub- 
sidies and investment incen- 
tives in Europe. 

Most of the large companies 
which had their pre-war head 
offices in Berlin moved to West 
Germany between 1945 and 1961 
while wminteining large- scale 


production in the city* When the 
Wall was built in 1961, the 
industrial exodus from the city 
gathered momentum. Suppliers 
moved to West Germany to be 
close to their customers who did 
not want to be dependent on 
deliveries from crisis-prone 
West Berlin. 

The Four Power Berlin Agree- 
ment of 1971 gave the city secur- 
ity but by 1983, 110,000 indust- 
rial Jobs had been eliminated. 
West Berlin’s GDP rose 2 per 
cent annually compared with 1L8 
per cent in West Germany and 
the city’s share of total West 
German (HIP fell from 4 per 
cent to 3J3 per eent Public sec- 
tor employment meanwhile 
expanded by one-third, 
reaching SOOfiOO persona by 
,1983. .... 

A Christian Democrat (CDG)’ 
city administration which came 
to power In 1985 poshed through' 
a sweeping economic 
restructuring programme which 
began to show results. By 1984, 
the West Berlin economy out- 
paced that in West Germany 
while the fall in employment 
was halted. 

Between 1984 and 1987, 32,000 
industrial and other jobs were 
created while, for the first time 
in 20 years, more Germans set- 
tled in West Berlin than left the 
city for West Germany. A record 
DM 2bn was invested in West 
Berlin industry in 1985. 

But just as the CDU was able 


to count some of the fruits of its 
efforts, the economic picture 
again began to cloud over. Fall- 
ing orders from members of the 
organisation of Petroleum 
Exporting Countries for plant 
and equipment (still a dispro- 
portionately large item in West 
Berlin's industrial output) 
depressed the growth rate to 2 
per cent last year compared 
with West Germany's Z5 per 
cent 

Unemployment remained 
stubbornly high during the 
mini-boom, reaching 1L5 per 
cent last month compared with 

a slight drop In West Germany to 
10 per cent 

Last year 77 new companies 
were attracted to West Berlin, 
investing DM 130m and creating 
1,723 new jobs. They would not 
have come, though, without the 
investment incentives which 
West Berlin's economics chief; 
Senator Elmar Pieroth, claims 
are higher even than in Ireland. 
The CDU earlier revised the 
incentives which had attracted 
a lot of highyvolume, capital- 
intensive producers using 
mainly labour. Too 

many companies added a nomi- 
nal final touch to their product 
in Berlin in order to benefit 
from the reductions offered in 
VAT. But now, high-tech com- 
panies operating in Berlin com- 
plain of a dearth -of skilled 
labour, a complaint not uncom- 
mon in other West German 


industrial centres. 

Despite the influx of invest- 
ments, jobs are again being lost 
ata faster dip than they can be 
created. The city’s electrical 
engineering industry, the 
largest industrial sector, has 
been hit by failing orders. Seve- 
ral large companies including 
Siemens want to reduce employe 
ment 

While the city’s efforts to lure 
hightech firms to Berlin has met 
with some success. It Is only a 
start 

It is hoped that west Berlin’s 
research capacity 180 establish- 
ments including the Max 
Planck, Fritz Haber, Habn-Meit- 
ner, Fraunhofer and BESSY 
institutes employing more than 
30,000 researchers can act as a 
magnet for science-oriented 
companies, together with the 
Incentives, of course. 

Attempts to expand the ser- 
vice sector of the economy have 
proved difficult apart from 
hotels which are flourishing. 
West Berlin has branches of 
nearly all the important West 
German banks and insurance 
companies, none have switched 
their base of operations to the 
city. 

The city-owned Berliner 
Bank, however, is rapidly 
expanding in West Germany and 
is being privatised in stages. In 
two years* time only 51 per cent 
of Its shares will remain in city 

Imnrfw. 


available 

1— A VAT (turnover tax) rebate 
from 3 per cent to 10 per cent 
on shipments of goods from 
Berlin depending on the value 
added in the city. As added 
rebate of A2 per cent for the 
West German customer or ex- 
porter. 

2— Investment financing; 


3 per cent per annum for 50 
years while 11 and 12 year cre- 
dit facilities at 5 per cent per 
annum are available. 

Taxfree Investment Grants: 25 
per cent on new plant and 
equipment and data proces- 
sing. 20 per emit on new bon- 
dings for production and 25 per 
cent for research and develop- 
ment. Up to 40 per cent on new 
equipment for R & D and 25 per 
cent fer production equipment. 

3— Accelerated depreciation of 
75 per eent for production and 
K & D buildings, machinery 
and equipment in the year of 
in v estment or during the first 
five years. 

4— Income tax reductions: 

a) Corporate: taxes are St5 per 
cent lower in Berlin than in 
West Germany, holding com- 
panies have a 19 per cent tax 
advantage local trade in- 
come taxes are about 50 per 
cent below those in West 
Germany. 

b) Personal: taxes are 38 per 
cent lower than in West Ger- 
many. In addition, a tax-free 
bonus is paid of DM4SJS8 per 
child earn month. 


Company snapshots 


From pharmaceuticals to airlines 


A number of leading Inter- 
national companies play an 
important role in West Berlin's 
economy: 

Siemens: Founded in Berlin in 
1847, the giant electrical en- 
gineering and electronics com- 
pany has 25,000 Berliners on its 
payroll and is the biggest in- 
dustrial employer. Beilin is still 
the firm’s largest industrial site 
with 15 plants and sales of well 
over DM 4bn. Siemens places 
DM 700m in orders with Berlin 
industry and trade and invests 
some DM 250m here annually. A 
new automation techno! 
plant costing DM 150m is to 

to produce 
eon- 


puiu% VUOUUg ItfvlU w 

opened in mid-year to prw 
circuit boards for its basic 


trol system. A fibre optics com- 
ponents factory was opened ear- 
lier year. 

AEG: Also founded in Berlin 
and now part of Daimler-Benz; 
this electricals firm employs 
7,500 in Berlin although employ- 
ment was sharply cut back in. 
recent years. 

Sobering: The only major com- 
pany to have retained its 
headquarters in Berlin, this 
pharmaceuticals and chemicals 
group has 6£00 peple in the city 
out of 2&000 worldwide. More 
than 80 per cent of sales are 
outside West Germany. 
Daimler-Benz: Mercedes compo- 
nents and engines are produced 
at its West Berlin factory in 


which DM 500m has been in- 
vested since 1978. DM 300m is 
planned for the next three 
years. DB bought DM 200m from 
Beilin suppliers last year. Its, 
high-tech research driving 
simulator is located in West 
Berlin. 

Nlxderi: West Germany’s most 
successful compute rmaker re- 
cently opened a DM 300m plant 
in West Berlin employing 1£00 
persons. Another DM 300m is to 
be invested in Berlin over the 
coming five years. 

BMW: Its entire motorcycle out- 
put is in West Beilin where 
L800 workers turned out 32,000 
units last year as well as car 
components. BMW will begin 


producing camshafts in the city 
after Investing DM 100m in a' 
new plant 

IBM Deutschland: 1,600 em- 
ployees in Beilin with sales of 
DM 320m. 

Gillette: 1,400 Berlin employees 
and sales from Berlin of DM 
275m. 

Philip Morris: 1,000 persons in 
Berlin in a highly automated 
plant 

Ford: Its plastics components 
plant employs 1,000 workers. 
Pan Am and British Airways: 
Together they account for 
almost all scheduled air traffic 
between West Berlin and 15 
West German cities as well as 
international destinations. The 


market is lucrative and PanAm 
is to begin a shuttle service star- 
ting June 1 between Berlin and 
Hamburg which is to be ex- 
tended to Frankfort and 
Munich. PanAm is also expan- 
ding its charter operations from 
Berlin to holiday points. 
Dan-Air: The UK carrier Is the 
biggest charter carrier in Berlin 
with 370,000 passengers last 
year, up 50,000, taking 60 per 
cent of the market followed by 
PanAm with 30 per cent Dan- 
Air also has scheduled routes 
between Berlin, Saarbruecton 
and Amsterdam and is hoping to 
begin scheduled service be- 
tween West Berlin and Gatwiek 
Airport year. 


Profile of Dr Guenter Spur whose advocacy of 
computers has made him a cult figure 

High priest of technology 


DR GUENTER SPUR’S vision of 
the computer-integrated factory 
is something of a nightmare to a 
growing number of West 
Germans. 

But Dr Spur, a 58-year-old pro- 
fessor at West Berlin’s Techni- 
cal University, insists the data- 
operated plant will result in a 
" more humane " Industrial 
atmosphere. Such views border 
on heresy in a society which is 
increasingly losing its once cast- 
iron faith in technology. 

The professor, though, has 
become something of a cult 
figure to his followers who 
include German industrialists 
as well as his students. His 
gleaming new research 
establishment has become an 
attraction for Industrial visitors 
to the city. 

The DM 140m building— a bar- 
gain by West Berlin standards— 
houses the Centre for Produc- 
tion Technology which was con- 
ceived to assure that West Ger- 
man industry remains at the 
forefront of the “ art" of manu- 


facturing. 

The core of the building is an 
enormous, glass-enclosed circu- 
lar hall packed with the latest 
machinery and equipment The 
giant machines are mounted on 
a special foundation which pre- 
vents vibrations from being 
transmitted between them. 

Surrounding the hall are a 
dozen workshops and labs for 
research in everything from the 
thermal and dynamic behaviour 
of machine tools to the plan- 
ning, simulation and control of 
flexible manufacturing systems. 
Rare is the modern manufactur- 
ing company which does not see 
its ftature here. 

Leading West German com- 
panies supply the machinery 
and equipment to the Centre at 
near cost price. In return, the 
huge twilling machines »»n<i 
robots are used for experiments 
which are mainly commissioned 
by the companies which pro- 
vided the hardware. The operat- 
ing budget, DM 20m last year, is 
provided by the prestigious 


Frauenhofer Society which is 
largely financed by German 
Industry and the Boon Govern- 
ment 

Dr Spur’s name opens the 
doors or executive suites, in Ger- 
man Industry because, among 
his contributions, he developed 
the software, for the control 
technology which enabled Mer- 
cedes-Benz to use welding 
robots on a large scale. 

In his regular lectures at the 1 
Technical University, the pro- 
fessor regales his students with 
blow-by-blow accounts of the 
history of the copy milling 
machine or numerically con- 
trolled programming. Uis stac- 
cato delivery and anecdotes 
ensure his popularity among 
students whom he frequently 
addresses using the familiar 
“Du" form. Professor Spur 
regards his academic post as a 
fountain of youth which he 
would be loath to exchange 
even for the highest paid com- 
pany directorship 


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Venture capital 


Rise of ‘sneaker* 
capitalists 


NO NEW Nixdorfa have yet 
emerged since West Berlin 
created the Centre for Innova- 
tion and New Companies (BIG) 
and the T echno logy and Innova- 
tion Park (TIP) three years ago. 

Nurtured by the Technical 
University, they were to aid in 
the setting-up of new hi-tech 
companies which were in short 
supply in both West Berlin and 
West Germany. 

Some 30 small hi-tech firms 
operate under the umbrella of 
BIG in a red brick pile which 
formerly belonged to the AEG 
company. Employing only a few 
hundred people they are still no 
immediate answer to Berlin's 
unemployment problem. Yet 
only a decade ago the mere idea 
of young engineers and scien- 
tists founding their own 
businesses in West Berlin 
would have met with derisive 
laughter. When they first 
started up in business they were 
disparagingly called “ sneaker 
capitalists ’’—from the athletic 
shoes some of them wore. 

BIG, which was the first such 
centre in Germany, was turned 
over to a foundation last year, 
backed by companies and 
banks. But the criteria for 
choosing whether a company 
qualifies to be boused in the 
centre remains " first, second, 
third and fourth whether they 
are entrepreneurs" according 
to Mr Joerg Poeschel of BIG. 

have a good pro- 
s. 

BIG, however, has been criti- 
cised for making already 
successful small compa n ies 
very successful Instead or selec- 
ting struggling firms with a good 
product 

The firms share a 
switchboard, telex, telefax, sec- 
retaries, conference rooms and, 
it they wish, accoiio tag services. 
After five years they must leave 
and make way for new firms. 

Many of the young companies 
are engaged in software and a 
good number in environment 
protection which has become a 
specialty in the wake of the 
acute German concern about 
pollution. The annual BIG 
TECH fair, attended by a grow- 
ing number of West German and 
foreign exhibitors, is yet 
another attempt to bring the 
world to Berlin. 

Close to BIG and the laxge 
new Nixdorf plant is the 
Technology and Innovation 
Park TIP where applied 
research institutes from the 
Technical University and other 
Berlin science establishments 
work side by side with innova- 
tive small and medium-size 
companies. 

West Berlin took the lead 


M# UU vvblf, a. 

“ Whether they have a good pro 
dnet only ranks fifth,” he adds 


among the West German states 
in setting up a state-baeked 
Innovation Fund in 1982 to 
promote the transfer of new 
technologies into local industry. 
Thus far, it has financed 50 pro- 
jects with DM 34m and is rated a 
success by the German Institute 
of Economic Research (DIW) in 
Berlin which keeps an inde- 
pendently critical eye on 
developments in the city. 

Similarly, the city-financed 
programme which has provided 
some 380 “ innovation assis- 
tants "—business graduates and 
young engineers— to smaller 
companies in the city which 
could otherwise not afford 
expert advice is also given high 
marks by DIW. It speaks less 
favourably about the city’s 
efforts to help new advanced 
technology companies to get 
established and suggests a spe 
dal fond be createdto aid such 
companies beyond the initial 
founding phase. Mr Kurt 
Kasch, member of the board of 
Deutsche Bank Berlin, believes, 
however, that using public 
money to finance innovative 
new companies largely serves to 
“ smother ” their efforts to suc- 
ceed. His own bank began sup- 
porting new firms with venture 
capital five years ago, achieving 
the greatest success among 
trades and service companies in 
the low and middle tech fields. 
The survival rate in the hi-tech 
area is about 30 out of 150 com- 
panies, in part he notes because 
they were founded by techni- 
cians and not businessmen. 

A total of 11 private venture 
capital companies are active in 
West Berlin where they have 
financed just over 50 projects 
worth DM 60m. The largely city- 
owned Berliner Bank, which is 
gradually being privatised, 
founded one of them together 
with the Berliner Commerz- 
bank, NLxdorf, Standard Elek- 
trik Lorenz and Hannover 
Finanz with each partner put- 
ting in DM 2m ana the banks 
providing a DM 20m borrowing 
limit The goal is to finance 
promising new industrial and 
service sector companies as 
well as already established Ber- 
lin firms which need invest- 
ments to expand. 

Mr Kasch voices the fre- 
quently heard complaint in the 
city that both young and old 
Berlin entrepreneurs rely too 
heavily on West Berlin demand 
and are often unaware of poten- 
tial markets in West Germany 
not to speak of others farther 
afield. 

His bank has tried to compen- 
sate by inviting businessmen 

from abroad to visit Berlin and 
meet potential business part- 
ners. 



Members of tlw WMt Berlin Free Democratic Party demonstrate at Checkpoint Chart* hotter crossing 
against smog from East Berfln 


Mood of the city 


The Wall demoted 


be < 


WESTERN prime ministers, 
presidents and monarchs visit- 
ing West Berlin have a habit of 
praising West Berliners for 
their fortitude in the defence of 
freedom and democracy. 

It is all well meant and goes 
down well with many West 
Berliners over 50 years of age 
who recall the 1948-48 airlift 
which broke the Soviet block- 
ade of the cily. Yet a consider- 
able number of West Berliners 
regard such praise as maudlin 
for there is little to feel heroic 
about in Berlin anymore. 

The main threat from their 
communist 'surroundings these 
days is the smog produced 
largely by East Germany's lig- 
nite-foelled power stations. A 
more ludicrous situation than 
the smog alerts in West Berlin 
this past winter and the official 
alleged absence of smog in East 
Berlin could hardly 
Imagined. 

The Wall is as distasteful to 
West Berliners as ever— when 
they get to think about it, that is, 
as it does not greatly affect the 
lives of most inhabitants. West 
Berlin drunken drivers and 
suicides occasionally ran into it 
and East German border guards 
sometimes . emerge through 
doom in the Wall to warn West 
Berliners to stop cultivating 
their gardens so close to the 
barrier. 

Otherwise, most West Berliners 
experience the Wall only when 
leaving or entering the city 
when they drive to and from 
West Germany. Contacts with 
relatives and friends in East 
Berlin and East Germany are 
strongest among elderly West 
Berliners, For the majority of 
younger West Berliners, 
however, the East has become 
more remote than the US which 
they see in TV serials almost 
daily. 

Supporters of the West Berlin 
Greens are a notable exception 
to this lack of interest in the 
East among the young. But it is 
precisely because of their close 
ties with the ecology and peace 
movement in East Berlin that 
the Greens are frequently bar- 
red from entering it. 

The authorities in West Berlin 
are hoping the tens of thousands . 
of East Berliners and East Ger- 
mans who were allowed to leave 
In recent years and to settle in 
West Berlin will strengthen the 
waning family ties with the East 


which are seen as a symbol of 
German unity. Their presence 
also offsets decline in the over- 
aged German population of 
West Berlin which In the inner 
districts is often outnumbered 
by Turkish GastarbeUer and 
their families. 

Berlin’s Turks, numbering 
112^)00, or 40 per cent of 
foreigners in the city, are on the 
whole a remarkably peaceful 
lot This, however, may well 
chang e in the fatzofe The 
second generation of Germa- 
nised Turks is showing signs of 
rebellion against both parental 
curbs and growing discrimina- 
tion. They are not even second 

clau citizens as few Turks, even 

among the younger ones, can 
take German citizenship. 

The authorities still argue 


prfdhiftmxj West Berlin is craw- 
ling with luxury cars — including 
more than 100 Rolls-Royces and 
Bentleys— and the e 
villas to go with them. 


lvb 


that Germany is not a country of 
immigrants while the. Turkish 
Government refases to permit 
its citizens abroad to hold dual 
citizenship. West Berlin is 
press ing the Bonn Government 
to make it easier for Gastarbet- 
ter of long residence to obtain 
German citizenship but with' 
fittle success. 

Whether GastarbeUer or 
native West Berliner, the work 
ethic. is fast fading according. to 
local fodustrialists.'They '-Coin : 
plain that West Beilin has one 
of the highest rates of absentee- • 
ism fa Germany due to illness, a 
feature it incidentally shares 
with East Berlin. 

More than one West Biotin, 
executive claims his fellow 
West Berliners are spoiled, 
have it too well and are 
shielded from the urgent prob- 
lems of the city. But this self- 
complacency is also found 
among businessmen fa the city 
who are hardly renowned for 
their aggressive pursuit of mar- 
kets outside West Berlin. 

“ They run to the public sector 
honey pot whenever orders 
begin -to slacken,” one Berlin 
banker remarks. 

The warm rain of subsidies dn 
the city has undoubtedly led to . 
the “drip feeding” mentality 
which West Berlin's economics 
chief; Senator Elmar Pieroth, is 
determined to change. The huge 
sums of public money available 
to the city undoubtedly are also 
a cause of the debilitating, 
corruption scandals which 
periodically hit the administra- 
tion. 

For a city with such economic 


ply 

Berlin. 

On the other hand, it fa also 
easier for someone : who 
embraces a counter-culture to 
get by fa West Berlin with its 

neighbourhoods filled . with 
organic food shops and book-- 
shops specialising fa Marxist 
literature. Alternative v Jlfe 
styles which thrive fa West Ber- 
lin are a powerful magnet for 
young West Germans who 
appreciate "the slower pace of 
life fa the city. Young West Ger- 
man males also come because 
they are not subject to military 
conscription as long as they 
remain fa the demilitarised 
city. ...... . -ii.”. 

Small wonder that the only 
national newspaper to come out 
of West Berlin , fa the organ of 
West Germany's counterculture, 
TageszdtuHg or Taz far short 
Its 'readership plummets peri- 
lously each summer when the 
West Berlin alternative scene 
migrated to the shores of the 

Mediterranean. 

Two top hotels are the tradi- 
tional lCwnplMH just Off the 
KurfUratendamm and the 
newer Staigenberger facing its 
own traffic-free square. Both 
have unobtrusive service and 
excellent restaurants. They are 
followed by the Intercon- 
tinental . and Schweizerhof 
hotels. 

Virtually every national 
cuisine fa now represented fa 
Wert Beilin and foreign 
restaurants have put German 
ones fa. a minority. But for 
hearty German fare there fa the 
Berliner Stube at the 
Steigenberger, Hardtke fa 
Meinekestrasse and Hector’s 
Deele in GroZmoustrasse. Die 
Ente (The Duck} at Yorckstrasse 
60 fa the borough of Kreuzberg 
serves an exquisite dock and 
many other freshly-prepared, 
and reasonably-priced dishes in 
a cosy, informal atmosphere. 

The Kurdistan restaurant fa 
Uhlandstrasse 161 is one of the 
rare places serving delicately- 
seasoned Kurdish food m 
Europe. The decor fa intimate 
and prices moderate, 


Conventions and Fairs 

A DM 186m boost 


THE GERMANS have a special 
talent for putting on great 
industrial and commercial fairs 
which West Berlin has been 
able to capitalise on. Fairs, 
exhibitions and more lately con- 
ventions have become a growing 
part of the services sector which 
the city wants to expand. 

This does not mean, though, 
that a convention centre the size 
of Berlin’s International Con- 
gress Centre can be run without 
public financing of the annual 
deficit. The benefits to West 
Berlin— as is true elsewhere— 
tie In the multiplier effect 
Thus, 55,000 visitors to conven- 
tions and fairs each year fill the 
many new hotels and patronise 
the airlines, restaurants and 
shops. Without the DM 65£m 
they spent fa the city last year, 
many an exclusive restaurant 
and boutique would have found 
it difficult to exist 

The mammoth International 
Congress Centre, built in 1979 
and linked with the fairgrounds 
by an enclosed bridge, reported 
74 per cent use of capacity last 
year and 165,000 participants 
attending 500 conventions. 
Handsome the ICC fa not, but it 
has enabled West Berlin to get 
the International Monetary 
Fund and the World Bonk to 
hold their joint annual meetings 
in the city next year with 11,000 
persons attending. 

Other convention coups 
include the International Che- 
motherapy Congress lined up 
for 1991 with more than 10,000 
doctors and researchers. Often 
the ICC fa used as a combined 


convention and exhibition 
venue as to the case of Compas 
which will be held fa May deal- 
ing with Integrated Information 
and data processing; com- 
munications and telecom- 
munications technology. 

At the fairgrounds under the 
Eiffel Tower-like Funktorm, a 
major DM 186m modernisation 
programme fa under way. While 
new fair buildings are inaugu- 
rated, old ones are being tom- 
down without any interruption 
of the schedule of- events. 

The year began with the 
traditional . Green Week 
agricultural and food fair fa 
February which drew exhibi- 
tors and agricultural officials* 
from all over Europe and 
abroad as well as 440,000 visi- 
tors from Berlin and West Ger- 
many. They function os a test 
market for new foods which the 
Danes and Dutch, use so 
skOfhUy for their sales in 

Germany- 

More than 2J)00 exhibitors 
(three-quarters of them from 
abroad), 20,000 trade visitors 
and 58,000 Berliners and Wert 
Germans seeking advice an holi- 
day destinations thronged the.. 
Internatio nal \ Tourism 
Exchange (TTB) held earlier this 
mouth. This event, the largest of 
its type owes Its success to the 
fact that West Germans are the 
leading per capita spenders on 
travel. Even the most remote 
Pacific isle sends its tourism 
director to the ITB in the hope 
of capturing a slice of those 
Deutsche Marks. 

Another hi g hli g ht is the Inter* 


national Audio and Video Fai 
held every two years fa Berii 
which begins at the end c 
August It fa billed as the mai 
European fair for home electee 
nics at which the industry pit 
sents the latest it has to offer 
The Overseas Import Fair, , 
showcase for the products 



steady progress since it w« 
launched 25 years ago. Agaii 
the attraction for exhibitors I 
the lucrative German market fa 
imp orts which last year brougfc 
782 exhibitors and 28,000 vk 
tors, many from West German 
and neighbouring Enropea 
countries. 

An automobile show, AAj 
which is staged every two years 
began as a purely local ever 
Seoned into a mini 


but has h 

..version or the Frankfort mot 
show. Last year’s AAA saw tl 
presentations of the new BH 
700 series as well as the nt 
. Jaguar and Rover Sterling mo 
els for the German 
. AKK, the city-owned compel 
which organises exhibitlor 
fairs and congresses fa »i 
responsible for organising We 
German exhibitions abroa 
fcastye " ft mounted lBof thm 
including Its largest ever, put i 
fa Cameroon. It also o rganic 

the food technology and packa 
fag fair FoodTech in Wuha 
China.- at which 70 exhibito 
took part from West German 
the Netherlands, Switterlat 
and Sweden. Success was sue 

that it is to be repeated in 198 








’937 


Financial Times Monday March 30 1987 


WEST BERLIN 3 


Culture 






Rivaliy in patronage 


Wpst and E&st — is flourishing. 

On the surface the dual cities 
are drenched in Kaltur, from 
tn^r - five- state-supported 
orchestras to the several dozen 
publically subsidised theatres. 
Thi^ of course, M in the German 
traainmx of strong regional sup- 
port ibr the arts, in Berlin it is 
heightened as both West and 
East compete to be redded as 

the German cultural centre, a 
rivaliy which invariably leads 
to ove rktn. 

Thus, West-Berlin and West 
Germany have pumped' an 
“Me^pwcont into West Beiv 
lirrs DST 530m cultnraFbudget- 
t h is a nniv ersary, year. East Ger- 
many has done-much the wmif 
toSart Berlin; while opening its 
dtembooks to . attract • top 
fnsht international performers 
to the East German capital. 

Suefa largesse; however, is no 
guarantee of results. Hie 
SehaubOhne In West Berlin, 
still regarded . as. the leading 
theatre of the German-sp eaking 
countries only a few years 
has suffered -from a lack of 
orientation since the departure 
of Peter Stein, its innovative 
first director. 

Meanwhile, the flagship of 
West Berlin's state theatre, the 
Schiller Theater, is outclassed 
by East Berlin’s foremost play- 
house, t he Deutsches Theater. 
Together with the 
Oper (Comic Opera House) 
under Harry Rnpfer, it la the 
best East Berlin has to offer. 

One of the few bright spots in 
West Berlin’s established 
theatre Is Hans NeuenfeLsaithe 
Freie Voiksbfihne along with 


the' talented former East Ger- 
man actors and actresses now 
working in West Berlin. 

West Berlin, though, remains 
a mecca for alternative theatre 
groups which exist on a shoe- 
string and normally outshine 
the established theatre. 

One- of them, the (Sips Thea- 
ter, last year came up with what 
Berlin has long waited for. a 
home-grown musical capturing 
the mood of the city, Number 1 
Line, written by Grips' director, 
Volker Ludwig. 

Berlin is well endowed with 
festivals of music, theatre and 
film whose quality necessarily 
varies from year to year. West 
Berlin's amnia] film festival 
earlier this month emerged 
from its- depths of recent years 
' with the help of the newly- liber- 
ated Soviet film. 

Here was an example of the 
city's traditional function as a 
cultural bridge between 
and West which pre-w a r 
exercised until 1933. West Ber- 
lin's Academy of Arts under its 
president, G&nter Grass, has 
played an important role in this 
process by holding public dis- 
cussions with visiting Soviet 
writers and film makers. 

West Berlin’s Cultural Forum 

located a stone's throw from the 
Berlin Wall continues to expand 
but remains incoherent Sties 
van der Rohe's monumental 
National Gallery and 
Scharoun’s Philharmonic Hall 
along with the amorphous State 
Library have stood isolated for 
years— both from each other 
and from the rest of the city. 

The Applied Arts Museum, 
resembling one of the more 
oppressive maximum security 
prisons, recently joined them. 


Several plans to draw these 
derivative Bauhaus structures 
together into some form of unity 
have been scrapped and a new 
start Is to be attempted. 

Some of the more successful 
example of modern 
architecture — in fact many of 
them are post-modern— may be 
seen scattered throughout the 
rtty as part of the international 
B uil d ing Exhibition GBA) 
which deals with the inn«»r city 
as a residential area. 

A major strength of Berlin, 
again both parts, is its wealth of 
museums. As in so many areas 
there are two of everything: two 
museums of antiquities, two 
nati onal g alleries and two Isla- 
mic, Egyptian and Near Eastern 
museums. 

East Berlin’s Museum Tgfand 
with its monumental Pergamon 
Altar as well as the Babylonian 
Processional Road and the 
Ishtar Gate are rivalled only hr 
the British Museum 

On a more mundane level 
there is the delightful new 
Museum of Transport and 
Technology in West Berlin as 
well as the restored Hamburg 
Itailway Station, now a museum 
conta ining a marvellous collec- 
tion of steam locomotives and 
19th century railway coaches: 

West Berlin will get yet 
another museum in the form of 
the German Historical Museum, 
a gjft from West Germany which 
is to be built near the Reichstag 
hard by the Berlin Wall Ger- 
many's former parliament b ay 
itself become something of a 
museum Although restored, its 
lack of use has condemned it to 
what the Germans pic- 
turesquely call a "sleeping 
beauty” existence. 


Wintergarten project 

Bank to the rescue 


WEST RERUN’S city fethera 
were seriously considering dig- 
ging an expressway tunnel 
under the Kurfikrsteadamm in 
the 1800s. It would have meant 
raxing one of the few surviving 
town house ensembles- dating 
back to the building of the 
boulevard in the early 1870 b. 

That project was mercifttlty 
shelved and the Wintergarten 
Ensemble in the Fasanen- 
strasse was saved— for the 
moment. But the city needed a 
patron willing to restore two of 
the former residences damaged 
during the war and badly neg- 
lected afterwards. .... 

At this point Deutsche Bsnki 
West Germany?* Tmightiest,- 
entered the picture.lt still feels 


a sense of noblesse oblige 
toward Berlin where its pre-war 
headquarters stood in what is 
now Eafct Berlin. 

MrBernd Schulz, a partner in 
the Pels-Lensden art gallery 
who had his eye on the run- 
down houses for some time, con- 
vinced Dr Friedrich W. Wietb- 
ege of Deutsche Bank's subsidi- 
ary in West Berlin that they 
were well worth restoring. Ha in 
turn convinced the board of 
directors in Frankfort and the 
hank bought them for DM &2m 
in 18B4 and spent another DM 
10m on their restoration. 

Returned to' its former' gran- 
deur', : the - eclectic Villa 
&isebacli : 'iB.vxow occupied -by 
Ute gaUet? and used for special 


East Berlin 


exhibitions. Its equally splen- 
did neighbour, modelled on a 
Mnaii Parisian hm«iw 

the new Kathe Kollwitz 
museum. The third building, the 
actual Wintergarten, was 
restored by the city and serves 
as a House of Li t e ratur e. 

Deutsche Bants legendary 
former head. Dr Hermann Am, 
was inemmantai in raising DM 
15m to enable West Berlin’s 
National Gallery to retain a 
valuable Watteau which was 
owned by Prlnz Louis Ferdi- 
nand of Prussia who was in need 
of cash. The tradition continues 
as Deutsche Bank has bought a 
17th century silver coin jug for 
DM 180,000. which it will present 
to Chariottenbnrg Castle. 


Comecon’s showcase 


EAST BERLIN is the showcase 
of Comecon, the most prosper* 
ouk city between Helmstadt at 
the East-West German border 
and Vladivostock on the Pacific 
■ Ocean. Statistically, is la an 
impressive success story. 

Every fifth East Berliner — . 
250,000 of them — owns a car. 
Average monthly femfly 
Incomes are some U750 Marks 
while apartment rents do not 
exceed six per cent of incomes. 
More than 200.000 East Berlin- 
ers have moved into new flats in 
recent years and by 1990 the 
remaining 80,000 still on the 
waiting list are to get a new flat 

More East Berliners travel 
abroad — to other East Euro- 
pean countries and Cuba —than 
the inhabitants of Moscow, 
Leningrad and Kiev together. 

What then are East Berliners 
for ever complaining about ? 
The reason for the endemic 
gr umbling , of course, is their 
proximity to West Berlin and 
inability to go there. . 

Imagine the feelings of an 
East Berliner watching an 
unemployed Gastarbeiter from 
WestBerlin- drive his car into 
East Berlin for an evening of 

inexpensive . entertainment 
obtaining a car in East Germany 
entails a ten to twelve year wait 
*mrf involves years of scrimping 
and saving. _ .. .. „ 

East Berliners follow the 20 
minute block of commercials 
each evening on the West Ger- 
man TV channel with a foscina- 
tios which would warm an 
adman’s heart Letters are dis- 
patched to relatives, friends 
and acquaintances in the West 
asking if they could mail than a 
1’ Amour lipstick and some 
Choco enmehies. 

Some Western products are 
available in the hard currency 
Intershops and the DeUkat and 
Exquisit shops for their ovm 
currency- But not East 
Berliner has 

man DM* or can spend 8 Maras 
for a tin of mushrooms. _ 

Those who do, espeelaflyotr 
mechanics, phunbers, ^«^ 
j-inwc and other repairmen are 

onthetoprfthetotempofeA 

plumber who advertise 
eligibility in the tonelyh«uj* 
totomns of an _EaM German 



■ ' .f ' ■ v A > . 



The Ehst German leader, 
Preskteot Erie Honecter 


Invariably,, when East Berlins 
era gather these days the sub- 
ject of conversation turns to a 
relative or friend who has had 
the incredible fortune to visit 
West Berlin or West Germany. 
After 25 years of the Wall, these 
visits are now possible at least 
for a small number of people. 

Previously, only retired Eas- 
tern erswere allowed to visit the 
West but now younger citizens 
are also allowed out on brief 
visits. It Is essential for them to 
be married, preferably to have 
children mid a clean record 
although they need not be active 
politically. They are also rarely 
allowed out with their partners 
which explains why nearly allof 
them return home. 

F-frf Berlin has changed phy- 
sically for more than West Ber- 
lin in recent years as its postwar 
rebuilding programme did not 
get under way until the 1970s: 
lust as in West German cities in 
the 1950s and 1960s, endless 
rows of concrete slab apartment 
buildings were strewn over East 
p^ tin, eradicating the former 


TBS* a plumber 
appointment at a 

involves either a large tebe 

East German Marks or a smaller 

one in DBflL - the 

Accordingly, nany Jj[ 
poshest summer cottage on 
waterways 

Hiwg the city belong to artisans. 


A few years ago the author- 
ities woke up to the feet that 
there, was precious. little urban- 
ity left in East Berlin. But it was 
too late to prevent completion 
of a gigantic monument to mis- 
understood garden city housing, 
the pre-fob wasteland of the 
Marzahn housing estate which 
is home to 130,000 East 

Berliners. . _ 

Cjty planners in E as t Berlin 
have retained tq_bufldiug flush 
with tiro line of traditional 


streets, using bay windows and 
other decorative elements to 
liven up concrete facades. The 
inner city working class 
borough of Prenzlaner Berg, 
where many buildings survived 
the wartime bombings and artil- 
lery, Is being given a thorough 
facelift. - 

Teams of renovators are mov- 
ing through street after street of 
neglected housing, restoring 
facades while installing bath- 
rooms in flats which had no 
such facilities. The average cost 
of renovating a flat is 40,000 
Marks but, unlike the West, 
tenants do not pay higher rent 
for the improvements. In spite 
of the low rents, though, many 
F»gt Berlin fouulies remain for 
behind in. their rental payments 
to the city housing authority. 

In much the same spirit, a 
growing number of East Berlin- 
ers do not even bother to pay the 
nominal 20 pfennig fore for pub- 
lic transport- 

A special attraction in Pre- 
nzlaner Berg is the Husemazm- 
strasse where tum-of-th e-cent- 
ury shops offer their wares and 
services along with historical 
restaurants. In a similar man- 
ner, an entire flattened section 
of Old Berlin around the rebuilt 
Ntkolaikirche has been rebuilt 
in the past two years using pre- 
fabricated sections fitted with 
gables and other medieval fea- 
tures. 

The church Itself; Berlin’s 
oldest, is to be dedicated in May 
as a city museum. The partial 
reconstruction of this earner of 
Old Berlin, however, is not 
nearly as convincing as the 
rebuilt Old Town of Warsaw or 
Budapest's restored Castle Dis- 
trict Nevertheless, it is a wel- 
come relief from the monu- 
mentally-scaled b uilding ?? tf 
Central East Berlin. 

Friedrichstxasse, prewar Ber- 
lin’s main entertainment street, 
is being rebuilt right up to the 
Wall and the crossing point into 
West Berlin at Checkpoint Char- 
lie. Yet another luxury abode 
for Westerners, die Grand 
Hotel, is to be opened shortly in 
Friedrichstrasse where the 
rebuilt Friedrlchstadt Palast 
offers some of Europe's best 
variety shows. 

Another variety theatre, the 
Wintergarten of old, is also to be 
resurrected In the Friedrich- 
strasse which is to be enlivened 
with cafes, shops and 
restaurants. Q is an attempt to 
lure East Berliners out of their 
flats in the evening hours when 
most of them spend their time 
vicariously in the Westwatcfi- 
ing West German TV. 



Profile: Gotz Friedrich 

Emperor of opera 


Ebeitaid Diepgen, Mayor of 
West Berlin 

Profile: Eberhard 
Diepgen 

Mayor of 
strong 


IT TOOK Gfitx Friedrich nine 
years and several detours— via 
Hamburg and London— to make 
his way from East Berlin's 
Komische Oper (Comic Opera) 
to become General Director of 
the Deutsche Oper in West 
Berlin. 

During this time he captivated 
audiences throughout Europe 
with his singular interpreta- 
tions of Wagner, Mozart, Verdi 
and Berg. But as a protege of 
Walter Felsenstein’s “realistic 
music theatre" at the Komische 
Oper he felt there was some- 
thing lacking. Friedrich was in 
search of just the right opera 
house with permanent ensem- 
ble in order to produce his 
opera of the Intellect and the 
senses. 

He and staid Hamburg did not 
hit it off while he was chief 
director of the Hamburg State 
Opera after cutting the umbili- 
cal cord to Felstensfcein in 1972. 

While Principal Producer at the 
Royal Opera Covent Garden he 
was also unable to put across 
his ideas as London was largely 
interested in spending money 
on star singers. None the less. 


his productions of the Ring and 
Lulu at Covent Garden were 
enormously popular. 

It was a gamble to choose 
Janacek’s “Mortuary" for his 
premiere in West Berlin in 1981 
but he won. Friedrich's next 
production, Berg’s Lula in the 
three act version, was even bet- 
ter than his acclaimed London 
Lulu. As in Friedrich's subse- 
quent production of Janacek’s 
Katya Kabanova, ensemble 
teamwork and Karan Arm- 
strong— his wife since 1979— 4n 
tiie lead role made the differ- 
ence. 

Friedrich reigns over an 
operatic empire of L00O 
employees in two houses— the 
other an operetta and musical 
theatre— and a budget this year 

of DM 97.5m of which DM B4m 

are state subsidies. Only 
Munich's opera has a larger 
budget in Germany than the 
Deutsche Oper Berlin. Else- 
where, the Paris Opera this year 
has a budget of DM 143m of 
which DM 100m are courtesy of 
the French Government. 

But Friedrich is satisfied with 
th e two per cent increase In 


spending he is given annually 
which he notes is "paradise” 
compared with London. 

Tours such as the one to Japan 
later this year with an entour- 
age of 350 persons are becoming 
almost prohibitively expensive. 
They would be out of the ques- 
tion if the West German Foreign 

Ministry, the city of West Berlin 
and patrons of the Deutsche 
Oper did not chip in with the 
finances. 

Berlin's 750th anniversary 
means increased competition 
with East Berlin in the cultural 
sphere he notes, with new pro- 
ductions of Dr Faust, Die Huge- 
notten, Oedipus and Der Freis- 
chfttz to be mounted. But be 
regrets the cultural rivalry is 
taking place "in a test tube” as 
East Berliners and East Ger- 
mans are not permitted to par- 
take of West Berlin’s offerings. 

In the situation of a divided 
city, he remarks, culture does 
not merely have an “alibi func- 
tion” for society but is as impor- 
tant as economic life although 
more difficult to measure. 

When Friedrich says the 
“European feeling” is most 



Gdtz Friedrich: reigns over 1,000 
emp lo ye es 

intense in Berlin he naturally 
includes East Berlin where be 
spent the fruitful years from 
1953 to 1872 at the Komische 

Oper. 

“Why should we have to go to 
Barcelona to get young singers 
when we could get them from 
the GDR?" be asks, adding 
wistfully “it’s not easy, though.” 

Only one other European city 
-could tempt hi™ as a place to 
work and live, he offers, and 
that is Vienna. For the time 
being, though, he has a long- 
term contract to remain in 
Berlin. 


presence Profile: Herbert von Karajan 


BLAND AND predictable, 
those appear to be the salient 
features at Mr Eberhard 
Diepgen when he became the 
Christian De m ocrat's (CDll) 
governing mayor ef West Ber- 
lin In 1984. 

But within m o n ths the young 
mayor called on the Western 
allies In the city to abolish a 
number of “ obsolescent " post- 
war occupation laws (which 
they eventually did). He 
sounded more like an SPD man 
t*»«u a conservative on several 
social issues. One Greens 
politician in Berlin noted that 
Mr Diepgen surprised every- 
one by “ overtaking the social- 
ists in the left lane.” He exem- 
plifies the- new generation of 
West German politicians who 
were unburdened by wartime 
guilt feelings. 

Lately the govern iujt mayor 
has ruffled allied feathers by 
inviting East Germany's leader 
to West Berlin next mouth. 
Conservative editorial writers 
who welcomed him in 1984 are 
new regretting that he ever 
became mayor. 

Nothing seems to pertorb the 
unflappable 45-year-old sir 
Diepgen who is a product of the 
so-called “ concrete squad ” of 
young, self-confident city hall 
politicians. A lawyer by train- 
tog, he fields questions about 
allied legal rights in Berlin 
with aplomb. 

It is HHTIgalt to stop Mr 
Diepgen when talks turn to the 
future of Germany. West Ber- 
lin, in feet, is still the last bit of 
Germany left— neither gov- 
erned by Bonn, or by East Ber- 
lin bat instead under the con- 
trol of the three Western allies. 

Mr Diepgen is confident that 
when Berlin celebrates its 
808th anniversary 59 years 
from now it will no longer hove 
a Wall and the city will “ again 
have same form of unity.” 

“H there is a German 
national state by that time,” he 
remarks, “ then Berlin will be 
the capitaL” In the meanwhile 
he wants Berliners to regain as 
much freedom at movement 
between the two halves as 
possible. The tiirnst of Bonn's 
policy on East Germany and 
Berlin he says is to make sure 
West Berlin Is not M excluded” 
from positive developments 
around the city. 

He knows fell wed, however, 
that East Germany, fer 
example. Is net prepared to 
allow twinning agreements 
between boroughs in East and 
West Berlin such as those 
recently permitted between 
several cities in East and West 
Germany. 

“ It is important that Berlin 
net be treated as an object of 
poUcy but instead can make Its 
own cantrflratan,” he observes, 
adding “ of coarse, always 
within fee framework of the 
four pow e r Berlin agreement 
and the responsibility of the 
three powers fer West Berlin.” 

The mayor's voice sharpens 
when he explains that Ger- 
mans in the West cannot be 
“ patronised “We are a self- 
confident nation owd are 
(of the Western powers).” 

The relationship between 
the two Germany's is an 
emotional ana tor Germans. If 
the Impre ss i o n arose that the 
Germans are bound against 
their will this would act to the 
detriment of the protecting 
powers (in Berlin). Each party 
should look after his own. 
In tel esto aside from me paral- 
lel interests we have with each 
other.” 

In do circumstances, be 
wplalnad, (fif| this mMB that 
the Germans want to embark 
on a separate political path. As 
for himself, be says he is 
venturing no further than the 
Allies have already gone to 
wanting to accept Mr Boneck- 
er’s invitation to attend the 
759th anniversary ceremony In 
East Beriln. The three allied 
wnWciM in East Berlin 
attended the New Year's con- 
cert there opening the cere- 
matoi 

“The Allies are coming 
around to see my point of 
view, 0 - he remarks cheerily. 

Hr Diepgen might have a 
long run as governing mayor if 
he can manage to prevent 
another local corruption scan- 
dal from raising its ngty head. 
He survived last year's serious 
affair involving bribery to city 
officials by West Berlin buil- 
ders without too many scars 
but It is doubtful whether he 
could emerge unscathed a 
second time. 


A maestro hard 
to succeed 


MUSIC CRITICS in West Berlin 
reviewing a concert by the Ber- 
lin Philharmonic Orchestra 
under its “lifetime” conductor. 
Herbert von Karajan, rarely foil 
to mention that the applause 
was “thunderous”, “seemingly 
never-ending” or “of a demon- 
strative nature.” 

' Such is the awe in which von 
Karajan is held that there Is no 
public discussion In West Ber- 
lin over a possible successor to 
the 78-year-old maestro. For 
years he has suffered from a 
painfol back ailment causing 
him to shuffle slowly to the con- 
ductor’s box where a stool 
awaits him. 

From the first note on, 
however, when his frail torso 
draightwia, it is clear he 
lost none of his dlan or char- 
isma. Each of the six double 
concerts he gives annually with 
the Berliners becomes a 
triumph of mind over 


The programmes as always 
are geared to the conservative 
tastes of the audience and, not 
least of all, to von Karajan’s TV 
company which records each 
performance. 

“Karajan is a musical, media 
and financial genius,” notes one 
prominent German musician 
without malice. Another, 
remarks more acidly that con- 
ductors are— or should be — 
interchangeable while orches- 
tras such as the Berlin Philhar- 
monic are not. 

Guest conductors appearing 
with the Berlin Philharmonic 
these days are invariably sized 
np by the audience as being 
either a worthy prospective suc- 
cessor to the living legend or 
not. Von Karajan himself 
entered the guessing game two 
years ago by suggesting that 
Semyon Bychkov, the young 
Russian-born American con- 
ductor, was his first choice. But 




r .* r V.*- ‘ • • 



Herbert von Karajan, conductor of the Berlin Philh armo nic 


competent though he is, Bych- 
kov is not regarded as a front 
runner to succeed him. 

Even if von Karajan decided 
to step down after more than 
three decades as chief conduc- 
tor of the Berlin Philharmonic 
his successor would not be 
envied. For it is unlikely that 


another conductor would want 
to take over during von Kara- 
jan's lifetime knowing the 
inevitable comparisons which 
would be drawn. There is also 
the very real risk that von Kara- 
jan, with his foible for intrigue, 
would not iiwfa life easy for his 
heir. 




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Each of our hotels has its own individual 
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• ffi - “ jf— - -y 



16 




Financial Times Monday March 30 MSI 


THE ARTS 


Behind the Mask/Channel 4 


Andrew Clements 


With more than a touch of 
serendipity, Channel 4 yester- 
day launched a major series 
devoted to the work of Harrison 
Birtwistle, in the week in which 
it was announced that he had 
bees given both the Evening 
Standard Opera Award for 
1986, and the highly prestigious 
Grawemyer Award, worth 
$150,000, whose only previous 
winners have been Lntoslawski 
and Ligeti Channel 4 is to 
screen repeats of the Aquarius 
production of Down by the 
Greenwood Side and the Opera 
Factory Punch and Judy, as 
well as the first showing of 
Derek Bailey’s television ver- 
sion of yon Tan Tethera, based 
on last summer's Opera Factory 
staging. But the season began 
with Anthony Snell’s documen- 
tary Behind the Mask, which 
proved to be one of the more 
successful and revealing com- 
poser portraits of recent times. 

Alongside the usual array of 
talking heads — Peter Hall and 
Pierre Boulez conveying 

admiration for Birtwistle’s 

achievement in their own, very 
different ways, Elgar Howaxth 
and David Freeman hinting at 
the intricacies of putting on 
The Mask of Orpheus — there 
were substantial extracts from 
Orpheus, apparently the only 
video recording made of the 
£370 production, and from 
Secret Theatre. The elements 
were cross-cut In a subtle and 
fascinating way, building up a 
mosaic of the man and his 
music from a -variety of per- 
spectives, just as bis own works 
map out their territory an 


angle, a context, at a time. 

Host potent of an there was 
the composer himself, explain- 
ing his approach to inventing 
music, his te chni ques and their 
beginnings, and in a substantial 
section of the film made in his 
native Accrington, revisiting 
the farm where he grew up. 
Some of those personal revela- 
tions seemed almost too honest: 
he looked back on his early life 
as a kind of Arcadia, sur- 
rounded by wild woods and 
fields in which he wandered 
and absorbed the natural 
world. Then a gigantic power 
station was built beyond his 
father's land, dwarfing the 
house, violating the landscape. 
It clearly had a traumatic 
effect; his teenage music (in a 
su b-V a ughan-WUliams style— 
the nearest thing to “ modern ” 
music he had experienced at 
the time became an attempt to 
express the savagery of that 
intrusion. 

All of this experience has re- 
mained witb Birtwistle: the 
quarry near his house, which he 
explored and now likens to a 
man-made geometry imposed on 
the natural world, even a hill 
peppered with sheep, just like 
the mound that dominates the 
setting of Fan Tan Tethera. 
That sense of violence threaten- 
ing the most placid scene runs 
through his music, gives it a 
definition like none of bfis con- 
temporaries. And, as the 
wondrous extracts from The 
Mask of Orpheus demonstrated, 
it’s coupled with an ability to 
create images of a resonant, 
intricate beauty. 


Yerma/Cottesloe 


Claire Armitstead 


Lorca wrote Yerma two years 
before The House of Bernada 
Alba, his last and arguably 
greatest play. Its appearance 
in a new translation hot on the 
heels of its stablemate — which 
was ecstatically received in a 
Lyric, Hammersmith, produc- 
tion last year — arouses expec- 
tations that are sorely disap- 
pointed by Di Travis’ treatment. 
The expectations are the higher 
and the disappointment the 
sorer because this is the 
National Theatre under that 
rarity, a woman director, hand- 
ling a tragedy that grows out of 
a wholly female neurosis and 
despair. 

Yerma, eponymous protago- 
nist of the play, is a barren 
Andalusian countrywoman in a 
society where fertility is alL 
Guarded by her husband’s two 
spinster sisters, frustrated by 
her physical inadequacy, and 
trussed by her own sense of 
honour to an uhimaginitive 
shepherd husband, she falls 
prey to emotions the intensity 
of which will be readily under- 
stood by any woman who has 
endured the anguish of infer- 
tility— a hard enough cross to 
bear today. 

Juliet Stevenson, a strong and 
intelligent actress, plays these 
emotions for all they are worth. 
Initially she is a girlish, be- 
seeching figure whose hands 
flutter involuntarily to hex 
stomach and breasts as she 
learns of her friend's pregnancy 
or attends to her husband’s 
needs. Left alone, the sen- 
sualist within her emerges 
through self-caresses and an 
effecting love song to her tin- 
horn child. A little too 
quickly, the flame grows to 
a flame of bitter, frustrate 
anger: the would-be mother, 
full of the do’s and dont’s of 
other people's pregnancies, be- 
comes a self-condemned outcast 
who thrusts her hand under 
her skirts and brings it out red 
with blood — sign that another 
month has gone. 

The image is carefully cal- 
culated for maximum effect 
against the subdued costumes 
and bare grey floor of a theatre 


that Is set in the round with 
washing festooned from the 
balconies. Colour takes in its 
usual symbolic resonance in a 
design, by Pamela Howard and 
Bunny Christie, that echoes the 
repeated equation of barren- 
ness with stony ground. What 
works well once becomes a 
little too predictable when 
Yerma makes her pilgriage to 
a sanctuary reputed to work 
miracles of ' fertility. The 
Bacchanalian qualities of what 
is really a free-for-all are 
underlined by flamenco dancers 
clutching scarlet roses, with 
their entourage of blousy 
peasant miscreants. 

The fact that this is a folk 
tragedy is stomped home 
through the sanctuary en- 
counter and an earlier washing 
scene, where the same blousy 
peasant women pound their 
linen and chew over the 
brewing scandal of Yerma's 
flirtation with a -childhood 
sweetheart. All of which is 
fine, but it fails to cover up 
some odd casting — notably 
of Anne Dyson as the old pagan 
woman. Aside from the 
occasional verbal stumble, this 
is not a woman one could 
imagine throwing her Skirts 
over her head. An important 
contrast is lost with Yerma's 
poker-stiff sisters-in-law (Kate 
Dyson and Tel Stevens) who 
are pulled by such overt 
directorial strings as at one 
point to walk deliberately Into 
Yerma, forcing her to step 
backwards to avoid a collision. 

Such obvious devices are 
small compensation for a true 
sense of the domestic oppres- 
siveness which should be the 
flip side of the pastoral gaiety. 
The failure to establish this, 
and the tendency to go into 
melodramatic overdrive must 
be blamed partly on a trans- 
lation by Peter Luke which has 
Yerma manically repeating the 
word “barren . . . barren " as 
she throttles her husband and 
ber hopes. In the original 
Spanish the word would be 
** yermo " — her own name 
mouthed over and over, accus- 
ing, elegaic and empty. 




Glore Gallery 

Architecture/Colin Amery 

Temple for Turner’s genius 


You approach it through the 
garden— on the picturesque 

route — turning away from the 
Tate Gallery itself into the 
entrance cut out of the stone 
walL Glance up at t he lu nette 
window above the entrance — ■ 
shades of George Dance and the 
great prison waU of Newgate. 
Glance to your left at the 
chequer board of brick and 
stucco — shades of Lutyens 
around the comer and his pie- 
bald Page Street flats. 

The new Cl ore Wing for the 
Turner Collection at the Tate 
Gallery is the first major 
London building designed by 
James Stirling, Michael WUford 
and Associates- They are 
famous as the architects of the 
Staatsgalerle in Stuttgart and in 
fact have quite a line in art 
galleries: there is the Sackler 
Wing of the Fogg Museum at 
Harvard, the Tate Gallery in 
the Albert Dock in Liverpool, 
and projected designs for the 
extension of the Brera in Milan 
and the new wing for the 
Thyasen-Bomemisza Collection 
at the Villa Favorita In Lugano. 

It is important to realise, 
looking for the first time at the 
completed Clore Gallery, that 
it represents the first stage of 
the full-scale expansion of the 
Tate. Behind tiie Turner Collec- 
tion, on what was the old Queen 
Alexandra Military Hospital 
site, it is planned to build a 
Modern Sculpture Museum, a 
New Art Museum (surely some- 
thing of a contradiction here), 
and a major Study Centre. Ail 
have been designed by James 
Stirling and plans are afoot- 
hut no designs — for the final 
phase, the Museum of Twentieth 
Century Art. 

The key question to be asked 
about this new gallery is, bow 
well has the architect served 
the genius of Turner? If more 
evidence was needed, the new 
display of Turner’s works on 
canvas and paper as seen here 
prove beyond doubt the great- 
ness of his talent and the won- 
derful development of his 
vision. It is for my colleague, 
William Packer to write about 
the collection and its display 
but the presence of the genius 
of Turner is what this building 
has to be about. 

Mr Stirling has a powerful 
individual vision. It is not as 
coherent as Turner’s, hut what 
he is good at is carving impres- 
sive spaces out of the giant 
fragments of architectural his- 
tory. On a small site at the 
Tate he has accomplished two 
important achievements: one is 
a finely proportioned set of 
nine rooms for the pictures, the 
other is an ingeniously scaled 
public entrance area that has 
undeniable presence and forma- 
lity. 

Let us dispose of the outside 
quickly. There is, at least for 
the modem architecture 
watcher, an intriguing series of 
references and games here. 


Stone and brick are cut away 
at entrance and comer as 
though the building was made 
of cardboard. Windows become 
breaks in the cornice, squares 
in patterns are toyed with as 
a plied decoration, the ghost of 
the Baubaus lives on in the 
street elevation and chaos 
reigns on the roof where plant 
is scattered with a liberality 
that is profligate. Shades of 
the day-glo sixties linger in the 
choice of vivid green for the 
windows. 

Inside the first impression is 
a strong one. The main stair- 
case that leads to the galleries 
sweeps across the main hall at 
right angles in front of you. 
The chequer pattern from out- 
side is repeated on the main 
wall in peachy orange painted 
plaster. The floor is a dignified 
London pink granite. A Suther- 
land portrait of the benefactor, 
the late Sir Charles Clore, is 
flanked by coarse and ugly up- 
lighters. A jovial column — play- 
ing a game with the cylinder 
and the cube— seems to have 
been placed to deliberately 
frustrate access to the informa- 
tion counter, I liked the cur- 
vaceous and solid built-in 
furniture. 

The galleries are a simple and 
elegant series of rooms. I felt 
instinctively that they are all 
too narrow. One token bay win- 
dow was all that conservation 
permits. In good daylight the 
elaborate roof shape reflects 
light down on to the pictures. 
I did not see the galleries on a 
good day and so the visible 
flourescent lights were on. The 
effect of these is unsympathetic: 
yon see in your head the reflec- 
tion of the bright tubes as you 
do when you close your eyes 
after looking at a light bulb. 1 
hope that the lightning effect 
I saw on a dull day, when the 
ceiling plane shone out bright 
and white and some of the pic- 
tures had shadows along the 
tops from the frames, was a 
rehearsal. 

The wall colour is problema- 
tical. The architect wanted a 
cool and serene offect and the 
decision was made to have oat- 
meal hessian wall coverings. 
The curatorial staff would have 
preferred a red tone— as Turner 
himself had in his own gallery 

There are other problems in 
the design of an effective gal- 
lery. Not the least of these is 
the question of the security of 
the paintings. There has been 
much debate at the Tate about 
the need to keep the visitor at 
a suitable distance from valu- 
able paintings shown without 
glass. The present temporary 
arrangement of ropes in front 
of the pictures is unsightly and 
damaging to the calm effect of 
the galleries rightly wanted by 
the architects. If there has to 
be a visible barrier surely it 
should be sensitively designed 
by the architects as part of the 


overall design of the rooms. The 
suggestion of a barrier in the 
change of the nature of the 
floor surface — from carpet to 
wood is not, as at present de- 
signed, emphatic enough. 

What is a major achieve- 
ment for a British gallery Is 
that the complex and elaborate 
technical aide of the display of 
paintings is kept under control. 
There are no creaking and 
moving parts that characterised 
the 1970s extension's attitude to 
light control. The forms of the 
dare’s galleries are refined and 
handsome. The provision of Uve 
light is going to be £be great 
excitement of fee galleries and 
the teething problems will no 
doubt be solved. 

It was Raskin, the great 
friend of Turner, who wrote 
that architecture should he 
entertaining. He prefaced this 
by saying that architecture 
should always be correct I 
predict that this addition at the 
Tate Gallery will be warmly 
welcomed as a good example of 
the formal monumentality that 
Mr Stirling has made his own 
style. There is evidence here of 
an architect developing his own 
substantial voice; there are 
some wrong notes, but the total 
performance Is a bravura one. 

The correctness of modern 
architecture is something that 
has become impossible to 
define. Yon know when it is 
wrong more easily than you 
sense its contrived moments of 
perfection. It as perhaps unfair 
to compare the balance of 
Turner’s creations to fee 
unevenesa of this building. 
Stirling has created an 
intensely individual home far 
the artist— It Is a temple but 
an uncertain one. 


Euaen Jochrnn 


Eugen Jochrnn, who died last 
week at fee age of 84, was one 
of the last German conductors 
of towering stature. He spent 
fee war years conducting 
orchestras in Hamburg and Am- 
sterdam (but. since his political 
character was unstained, fee 
association wife fee Concertge- 
bouw survived long after war- 
time constraints had ended); 
afterwards he was based mainly 
in Munich. 

In spite of much operatic 
experience (of which fee DG 
Meistersinger recording wife 
Fischer-Dieskau and Domingo 
Is perhaps the finest memento), 
Jochrnn will be remembered as 
one of the great adherents to 
the Austro-German symphonic 
tradition — and above all, per- 
haps, as a conductor of 
Bruckner, whose works he 
championed long before their 
current popularity. 


Serious Mnnev/Roval Court 


Caryl OrarcMlTs esnosttive 
comedy is a hectic "Jot off 
the presses" look at fee City 
of London after Big Bang-The 
production Is prefaced wXb a 
scene from Thomas Shadwells 
The Volunteers (1682), a pre- 
monitory flash of a nation on 
the rampage for shares in 
public enterprises and leisure 
markets (for performing 

monkeys and; rope acts), we 
cross-fade to a tabble 
tog and forecasting in a trading 
pit (designed by Peter Hart 
well) marked off wife bog 
green screens, leaping tele- 
phones and a well-stocked 
champagne bar. 

The cast of eight (supple- 
mented occasionally by 

members of fee CoiuTs Young 
Peoples’ Theatre) switch roles 
and locations with dizzying 
speed. The play is^as much 
about fee City as about Wall 
Street and, indeed, fee explo- 
sion in international dealing 
that has put paid to fee clubM- 
ness and cartel of the City. 

A ruthless takeover bid by 
Billy Corman, a corporate 
raider, is at the heart of a 
Catherine wheel of related 
flying sparks: fee end of feg 
Stock Exchange village street, 
insider trading ratified by 
covert operations through roe 
banks, a raw Yoikarbitrageur 
toying wife the UK deal, fee 
visceral appeal to fee yuppie 
traders of futures and -options 
as a mixture of roulette and 
space invaders, fee Third World 
debt, fee cocaine market, sex 
scandals and image-boosting 

CnHM an inmiirV 


scanoais ana 

sponsorship forays, an inquiry 
by the Department, of Trade 
and Indust ry, a suicide. 

It sounds exhilarating and 
some of It is. It is easy to pot 
up with some sloppiness In 
Max Stafford-Clark' s production 
when Alfred Molina as fee 
American banker embraces fee 
house to his million- makiDg arid 
ma twinTigni, or when Gary Old- 
man as fee clenched and 


Michael Coveney 

frenetic Gorman descends on 
fee dealing pit wife fee 

fing er-stabbing mania ; of 'a 
petticoat Lane china sti^older 
in foul-mouthed overdriven 
There are good momente of 
explanation, and even .better 
pwiwioai explosion at 

g* end of each half-^rth 

Jongs have words by Ian Duiy, 
fee first an scatchrat 

for gaudily-jacketed trading 
iV fee second a pulsating PUb 
rock hymn to five mo re glon ous 
years of a Tory Government; 

concupiscence and ratified 

pi &S e Ms Churdull has spun a 
thriller narrative through the 
middle of the dealings and 
betrayals that is both feeble 
and muddling. There is a 
hovering air of what it is that 
has driven fee public school- 
hoy Jake (Julian Wadham) to 
suicide, but the details are 
hurled in such awkwardly 
affixed second act developments 
as fee copper mine sales .of a 
Peruvian heiress and the 
cocaine market manoe uvring s 
of an Elton-educated Nigerian 
potentate. And even readers 
of tins newspaper may wonder 
what has Jake actually done and 
what is fee connection between 
the DTI investigation and the 
little Yorkshire businessman 
whose go-getting secretary has, 
without his approval, put his 
name to an artistic! muraL 
There are pleasurable echoes, 
you wUl have noted, of the 
Guinness affair, fee Boesky 
business and the Halpem hype, 
although fee extraordinary 
sight of Mr Ralph Halpezn . and 
his loyal wife being cheered to 
the echo by shareholders shortly 
after the revelations about his 
private life is never really 
improved upon by Ms ChurchilL 
I believe this is something to 
do wife her dogged, graffltf- 
2 Bee approach. No question, she 
and fee cast have done their 
homework. But there is more 
theatrical juice and conviction 
in a public play like Brossneck, 


David Hare's aod Howard 
Bremen's panoramic view of 
finance and fee family In fee 
Britain of a decade or so ago 
after Poulson, T. Dan Smith. 
Wilson and John Bloom; or in 
fee same pair’s recent Proodo. 

Neither was probably as 
earnestly researched as Serious 
Money, but in yielding stronger 
theatrical resonance they 
caught a spirit of fee times 
more successfully. Ms 
Churchill’s technique of wrap- 
ping fee test up in a versifying 
melange of Victorian panto- 
mime couplets and . second-rate 
doggerel after fee style of 
Steven Berkoff is another great 
drawback. Where iambics are 
used, fee scansion is erratic and 
annoying. And the rhyming of 
four-letter crudities becomes 
predictable and uninventive. 
The idea -is to catch the des- 
perate furore and noisiness of 
fee dealers’ world, bat fee test 
needs much more highl i ghting . 
and pointing — the overlapping 
dialogue passages arid, en s em ble 
“blah-blahs” are just messy. ' 

The play is certain to be 
successful, as fee topic is so hot 
and the subject Itself an excit- 
ingly new one for. the theatre. 
But it mads no great develop- 
ment in Ms ChurcMlTs composi- 
tional methods, no advance on 
Top Girb or Cloud Nine. Mr 
Oldman's woundup thuggery 
becomes, in the end, tedious 
and repetitive (his arriviste 
oik: is a pin-striped relation, no 
doubt, to Iris' cinema creations 
of Sid Vicious and Joe Orton); 
Lesley Manville supplies her 
personal' brand of prissy sensu- 
ality as fee avenging sister who 
joins fee party — although 

Sloaide-ness is oddly disquieting 
in short girls. But, apart from 
Mr Molina, the sharpest and 
most enjoyable contributions 
.come from TJnriw Bassett, an 
actress who never ceases to 
astonish me with her range .and 
versatility, and the curly-haired 
jack-in-a-box yclept Allan Cor- 
duner. 


The Maid of Orleans/Logan Hall 


Chelsea Opera Group pro- 
vided in Thursday's concert 
on e of their most valuable and 
rewarding recent deeds of 
operatic reclamation. Chai- 
kovsky’s sixth opera. The Maid 
of Orleans, has had a gener- 
ally bad Press — u vast vistas of 
undistinguished music" is fee 
judgment of fee Chaikovsky 
scholar David Brown in the 
New Grove, and it can stand for 
many others. We may not have 
come away from fee Logan Hall 
determined to lay siege to fee 
ENO until they add fee work 
to their repertory (as. they pre- 
viously -did another lesser 
known Chaikovsky- r - opera, 
Mazeppa, after an earlier 
Chelsea Opera concert per- 
formance). But, at the very 
least, the of the work 

tout court was made to seem 
absurdly rash. 

The main trouble with fee 
work is feat its various styles 
and manners don’t fit together. 
Even more than Mazeppa, which 
comes next in the Chaikovsky 
operatic canon. The Mo id shows 
fee composer grappling— 
vigorously but not always to 
clear purpose — wife operatic 
structures inherited from fee 
Meyerbeer brand of Grand 
Opera. Chaikovsky devised fee 
libretto himself (drawing 
mainly on Schiller’s play), and 
filled it with incidents and 


Max Loppert 

scenes ripe for Grand Opera 
treatment; the influence of Les 
Huguenots and Le Proph&te (in 
fee Act 3 coronation scene) is 
obvious. . 

The difficulty is not so much 
feat th e “big" mmsfe is all of 
inferior quality (some of it is, 
but none so weak as Meyerbeer 
himself, and that of the Act 
finale provides a lesson in the 
bold, stirring use of asymmetri- 
cal melody). But it sorts un- 
evenly wife fee other, more 
personal elements of fee musi- 
cal invention. In the. music for 
Joan (especially in duet with 
her Rergundian - knight-lover 
Lionel), in such thingk as fee 
tender little duet for Charles 
VH and his mistress Agnes 
Sorel, we suddenly recall fee 
intense “speaking" quality of 
Chaikovsky s operatic voice at 
its most characteristic. But it 
tends to be heard only, inter- 
mittently — and what comes be- 
tween its utterances, though 
often scored with brilliant 
resourcefulness, sounds mecha- 
nical by comparison. 

That there is nevertheless 
much beautiful, high-f emepered, 
heartfelt music in The Maid of 
Orleans is now proved: this 
Chelsea Opera Group perform- 
ance under Paul Daniel’s 
inspired direction made one 
feel that none of fee “in- 
between" passages is wholly 


without merit. It is a substan- 
tial undertaking for a semi- 
amateur group of this kind— the 
choral writing is complex; fee 
scoring heavy, and 12 good 
singers are required for fee 
solo parts. The challenge was 
robustly met The long four- 
act opera was snipped here and 
there, never insensitively hard 
(though Jfeyerbeerian finales 
tend to sound more distin- 
guished when all their internal 
repeats are left in place). 

Many of- Thursday’s singers 
are, like Mr Daniel, regular 
ENO artlsts. All rose hand- 
somely to the opportunity for 
showing unfamiliar. dimensions 
to their performing personali- 
ties. In the "title role Sally 
Burgess sang many warm, 
touching; eloquently shaped 
phrases, even if it was really 
meant for a higher more power- 
ful voice than hers, and taxed 
her in places; The leading bari- 
tones Neil Hewlett (Lionel) 
and Steven Page (Dunois) were 
particularly striking. John Tre- 
leaven (Charles) started 
sluggishly but sang out more 
vigorously later on. The young, 
fresh voices of Alastair Miles, 
Elizabeth Byrne (as Agnes 
Sorel), and Paul Earthy res- 
ponded wife attractive ardour 
to Chaikovsky’s broadly arched 
vocal writing. 


Panufhik & Matthews/Elizabeth Hall 


The English Chamber Orche- 
stra quietly works away at its 
own corner of contemporary 
music. It may not be a concept 
of contemporary music shared 


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Arts Guide 


Muric/Mondsy. Opera rod Met/Tuesday. Theahi/ 
W edne sd ay. B MUBoue /Thuradsy. A aatocthe guide to 
■A the Aits appears each Friday. 


Music 


BRUSSELS 

M oraiteu m Orcfaesta 

ducted by Hans Graf with 

Murtiti, violin. Mozart, Schubert 
CTne). 

tui tion MrtLim.1 ft wlmri rii rmuln Mori 

by Mendi Redan with R. Bochbin- 
der, piano. Wagner, Schumann, 
Mussorgsky (Thar). 


NETHERLANDS 


Amsterdam, C on ce rt gebouw. Frans 
Bruggen wife fee Orchestra of fee 
18th C-ntnry: narh , Schubert, Men- 
delssohn (Toe). Recital Halt Jean- 
Jacqnes Kantorow conducting the 
Orchestra de Chambre tf Auvergne, 
wife BlankestiJn, violin. 

Stravinsky, Bach, Schubert (The). 
(7183451 

Rotterdam, Doelan. Organ recital by 
Aria Kaijzer Bach, CPJEL Bach. 

Kaqaor, Franck (Mon). James Con - 
km condtirting fee Rotterdam PfaU- 
harmonic, wife Maria JoaoPires.pl- 
aso: Wagenaar, Mozart, Debussy 
(Tne to Ssr) (414 29 U\ 

Bach concert far Fasskmtide Eas- 
ter from fee Netherlands Chamber 
Cbcdr and fee Amsterdam Bach Sot 
oists conducted by Michel Corboz, 
Wed in Nijmegen, Vezeniging 
(221100), Thur in Haarlem, Con- 
certeeboaw (32 ASM). 

ZwaDe* Odeao. The Lon do n 
no Trio: Mozart, Haydn 
(218500). 


Dried*, 
piano: Mozart, 

M^So^uarte^with Rian de Waal, 
piano: Brahms (Mon). (31 4544). 

S chereniu gBOf Circus Theatre. Inter- 
national eeQo concours. Mon: senri- 
finjubt , Tub: final wife fee Hague 
Philharmonic conducted by Ofemar 
Maga (55 88 00). 

Grantegan, Ooste r poort Mahler reci- 
tal by Jard van Nes, mezzo-soprano 
(Toe). (131044). 


LONDON 

Vw fWtia O ia wih— ■ r Wh-Htfry pfnirfraHn^f 

by Oliver Gflmour wife Anthony 
Goldstana, piano. Mozart Barbican 
Hall (Toe). 


CHy of Lnadoa Sfafoa l a c on ducted by 
Richard Hkkox. Britten and Shos- 
takovich. Queen Elizabeth Hall 
(Thur). (028 3181). 

PARIS 

E n s embl e fcrf ww wfaiuyi i — I- wwAiA 
ed by Michel Tabachnik, New Lon- 
don Chamber Choir conducted by 
James Wood: Varese, Gerard Mas- 
son, Michel Tabachnik (Mon). Thea- 
tre de la Vflle (4274 2277). 

baritone: 

LaGrange, soprano, Elizabeth Coop- 
er. piano: Rossini, BeWni. Verm 
* TMF-ChBtekt 


London PhflharaKBdc conducted by 
Okkn Kamn wife Nigel Kennedy, vi- 
olin. Sibelius, Tchaikovsky and I6el> 
sen. Royal Festival Hall (TueL 
(9283181). 

Bach Choir Vjn gTlab OiwwiHpg Ob. 
chestra conducted by Sr David WI11- 
cockx Soloists. Bach St John Pas- 
ska. Royal Festival Hall (Wed). 

London Symphony Ordwrtrm condort- 
ed by Neeme Jsxvi wife Cecfle Ous- 
Dvofak, Rachmaninov 


Cebu Qaatnor Arcana: Bartbk, Fto- 
notz, Ligeti, Debussy (Toe). Audi- 
torium des Halles (45828751). 

Soiree of Viennese Made (Tue). SaQe 
Gsvesu (4583 2030). 

Ainu* Rocker, organ: Cffivier Messia- 
en flue). RadtoRmee (4524 1516). 


BBC Sy mpho n y Q rimsfcns and BBC 
Singers conducted by Bernard 
Rands and David Atherton wife 
Elaine Barry, soprano. Bernard 
Rands and Shostakovich. Royal Fes- 
tival Hall (Thor). 


OBvinr Sense, gui tar. Richard I 
harpsichord: Vivaldi, Ponce, 
tboven. Villa Lobos (Thur). Salle Ga- 
veau (4583 2030). 

Orchestra National tie rile de France 
conducted by Era Queler wife Rosa- 
lind Plowright Verdi, Bellini, Spaa- 
turi (Thur), Salle Pieyel (4M1 0630). 


CHKSAGO 


March 27 -April 2 

Rose p i ano. Stravinsky, Liszt, 
Strauss (Thur). (435 8111). 


NEW YORK 

Carnegie Halt Orchestra of % Luke's. 
James Galway conductor and flute 

solo. AH Mozart programme; Cham- 
ber Orchestra of Europe. Djrin Ma- 
azel conducting. Mozart, Bizet 
(Thur). (247 79)0). 

Chamber Marie Society of Tinatin 
Centex (Alice TuQ^Charles Wad- 
sworth artistic dir ector, Tbfalas Pick- 
er piano. Handel, Brahms. Tobias 
1 (world pr e mie re), Beethoven 
Tue). Lincoln Center 
11911). 

KvAin HaR (Goodman Boose): Mask 
Spectrum. Baris lUx m um unde di- 
rector and piano. Shostakovich, Ar- 
vo Paert, Stravinsky, Taaeyev 


ing Byid, Dowiand, Motley (Thur). 
87th w.ol Broadway (382 8719). 

New Varik PUharaMalc (Aver y fisher 
Ha R): S temsiaw Shrewaoewski 
c o nductin g, Lome Monroe Jeefla 
Boccherini. Bruckner (Tue); 
bar Sknywacsweski conducting, 
gfyethm TSiwpwnaw piano. AU- 

Br whma p wi gra imne fHan). T .j ncob l 

Center (874 


Sr Georg 


(Orchestra Hall}: 
conducting, Jerome 


Waved? Consort (Alice TuHy Hafl): 
Theatre and dance mush: cf^ fee y 
of Cervantes (Dmri Li&ooh! Center 
(3621911). 


Andrew Clements 

by, say, the London Sinfonietta. 
but it is faithfully followed and 
regularly programmed. Thurs- 
day’s Elizabeth Hall concert, 
conducted by Carl Davis, 
brought two works new to Lon- 
don — Andrzej Panufnik’s Bas- 
soon Concerto (the European 
premiere), and David Mat- 

thews's Variations for Strings, 
commissioned by the ECO and 
first played in a concert at 

Uppingham School earlier last 
week. 

Neither piece breaks new 
ground for its composer, though 
Matthews’s finely idiomatic 

string writing and lucid har- 
monic sense offered more 
sustenance than Panufnik’s 

endlessly circular geometries. 
The Bassoon Concerto was 
commissioned by Thursday’s 
soloist Robert Thompson with 
Poiankj, a Polish cultural 
organisation in Milwaukee, and 
is dedicated to the memory of 
Father Jerzy Popieluszko, the 
Catholic priest murdered in 


Poland In 1984. It altenu 
moods of angry rhetoric i 
elegiac melancholy; the & 
writing contains almost all 
melodic interest there is. ' 3 
the material is so limited, c 
stantly eked out with rep 
tion and permutation, that 
final impression is of a w 
occupied with a musical hot 
comb — of no real substance j 
a rigid, unyielding structui 
Matthews's scheme is straif 
forward— eight variations, u 
the statement of the the 
(Bach's chorale “ Die Nacht 
kommen ") delayed until 
end and then followed by 
brief reprise of the first vaj 
tion. It is thoroughly war] 
and neatly integrated, w 
melodic and rhythmic figa 
interlocking through the i 
but ultimately rather Imj 
sonal, as U all the good ha 
work has so far inhibited i 
emergence' of Matthews’s □ 
creative personality. 


Chichester’s four for 1987 


The four productions for the 
1987 Chichester Festival 
Theatre's season, which runs 
from April 29 to September 26, 
are Robert and Elizabeth, An 
Ideal Husband, A Man For AU 
Seasons and Miranda. 

Robert and Elizabeth, the 
musical based on the lives of 
Robert Browning and Kifajihgth 
Barrett, stars Mark Wynter and 
a sew singer, Gaynor Miles. 
The book and lyrics are by 
Ronald Miller, music by Son 
Greiner and directed by Stewart 
Trotter. 

Joanna Lumley makes her 
Chichester debut in Oscar 
Wilde's An Ideal Husband, with 
David Gwillim, Lucy Fleming 
and Amanda Waring also in the 
cast Kenneth Ives directs. 


Robert Bolt's Mon Ft 
Seasons is directed by 
Hauser, with Tony Britl 
Sir Thomas More. The 
ends with Miranda, a nev 
edy by Beverley Cross- 
Carlo Goldini — starring 
lope Keith. Wendy Toye c 

“Kiss Me Kate 3 a 
the Old Vic 

The Royal Shakespeare 
pany*s production of 
Porter's Kiss Me Kate wil 
in London at The Old 1 
May is headed by the 
“s* as at Stratford- 
Jones, Nichola McAuliffc 
Flavin and Fiona Hendlej 






17 




Here’s 
what it’s 






Unisys introduces three new computers 
today 

Computers that apply the latest available 
technology to the needs of today’s business 

person, as the corporation 
promised to do. 

Computers that expand 
the versatility and 
usefulness of other 
existing systems, as 
Unisys promised to do. Computers that 
support and add value to the existing 
architectures of the companies that 
formed Unisys, Burroughs and Sperry 

The B 38 workstation incorporates Intel’s 
new 80386 microprocessor to add 
enormous power and speed to 
networks of B 25 series intelligent 
workstations, IBM PC compatible 
microcomputers, or combinations of 
those. The B 38 is also capable of 
working within either A Series or 1100 
Series mainframe environments. 

The new V 510 and V 530 mainframe 
computers greatly extend the power of that 
product line. With the addition of these 

models, its now possible 
for customers to start out 
with a moderately 
powerful mainframe and 
increase power to match 
their needs by more than 
nine times, without needing to stop for 
software conversions. 

Responsiveness to the needs of 
customers, current and future, is a major 
source of the strength and innovation that 
Unisys brings to the computer market 
today That responsiveness is the basis of 
the Power of 2 . 

UNISYS 

The power of 2 








Financial Times Monday March 30 1987 



FINANCIALTIMES 

BRACKS HOUSE, CANNON SWEET, LONDON EC4P48Y 
Tfeteqr a n raH MnUm^ 

*feteDhcxKe 01-248 8000 


Monday March SO 1987 


Escalation in 
the chips war 


IF THE multilateral trading 
system enshrined in the General 
Agreement on Tariffs and 
Trade is to survive, it needs the 
whole-hearted support and com- 
mitment of the United States. 
That commitment looks fragile. 
At the end of last week the 
Reagan Administration 
announced plans to impose 
tariffs on certain Japanese 
electronic products. This is to 
punish Japanese companies for 
their alleged failure to abide 
by the terms of last year's semi- 
conductor trade agreement 
between the two countries, 
which was designed to curb 
predatory pricing by Japanese 
manufacturers and to open up 
Japan’s domestic market to US 
suppliers. That agreement was 
itself of doubtful legality under 
Gatt rules; the European Com- 
munity is challenging it. Last 
week's decision is even more 
dangerous. By resorting to 
aggressive, unilateral action, 
the US is setting a had example 
just at (he time when a new 
Gatt round of multilateral trade 
negotiations is getting under 
way. 

There are two possible justi- 
fications for the American 
action. The Administration 
needs to show Congress that it 
is prepared to talk tough and 
to act tough, that existing trade 
legislation permits it to do so, 
and that there is no need for 
more extreme protectionist pro- 
posals. The Administration pre- 
sumably hopes that the new 
tariffs, which will affect only a 
small proportion of total 
Japanese electronics exports, 
will not provoke Japan into 
serious retaliation, but will In- 
duce a stronger effort to en- 
force the terms of tile semi- 
conductor agreement The risk 
is that by leaning so far in the 
direction of bilateralism and 
reciprocity, the US Government 
will find it Impossible to climb 
back. 

Leading players 

A second Issue is the claimed 
difficulty of applying Gatt rules 
to high-technology products. 
The American semiconductor 
makers have long argued that 
Japan has targeted their sector 
of the electronics industry, that 
Japanese producers, with their 
deep pockets and so-called 
laser-beam approach, have used 
predatory pricing to drive rivals 
out of business and that tile 
result will be Japanese domina- 
tion of the world semiconductor 
market 


It is true that the Japanese 
have overtaken the US in pro- 
duction iff commodity memory 
chips. They are poised to 
advance in (he more sophisti- 
cated areas such as micro- 
processors. Japanese prowess 
in high-volume, high-quality 
manufacture makes them 
formidable competitors. But 
there are other brandies of 
electronics, including parts of 
the semiconductor market itself, 
where the Americans are still 
the leading players. It is en- 
tirely reasonable for the Ameri- 
cans both to use normal 
anti-dumping procedures and to 
press for freer access to the 
Japanese market, especially in 
products where they have a 
comparative advantage. But the 
attempt to regulate trade in 
semiconductors through bi- 
lateral negotiations is wrong in 
principle and almost certainly 
ineffective in practice. Piling 
on new sanctions in an effort 
to enforce H will damage the 
world trading system without 
improving the competitiveness 
of US semiconductor makers. 

Gatt negotiations 

The Us action will encourage 
the view in Europe that the 
only way to deal with the 
Japanese is not only to brandish 
a oig stick but to use it Japan’s 
progress in opening up its 
economy to foreign participa- 
tion is frustrating!? slow. There 
a zq legitimate grounds for 
Western anger in such fields 
as telecommunications and agri- 
culture, where the forces of 
conservatism in Japan are hard 
to 1 budge. But political leaden 
in the US and Europe too often 
seem to forget that the 
Japanese trade surplus has very 
tittle to do with reel or Imagined 
protectionism or nnfdr trading 
practices. Moreover, they are 
incr easing ly tending to see 
trade issues in terms of protect- 
ing or promoting national in- 
dustries. 

Yet all the major industrial 
countries— and developing ones 
too— have just committed them- 
selves to the Uruguay round of 
Gatt trade negotiations in which 
the re-establishment of the 
principle of non-discrimination 
is a central objective. It is 
extremely worrying that politi- 
cal leaders axe making no 
attempt to proclaim the virtues 
and benefits of a liberal trading 
system, but instead are pander- 
ing to the protectionist instincts 
of national interest groups. 


Bringing the law 
into disrepute 


CRIMINAL JUSTICE, like any 
other department of state, can- 
not be expected to function 
faultlessly in this country or 
any other. Nor does a spasm 
of public outrage at the handl- 
ing of a particular case provide 
the best occasion for the dis- 
passionate consideration of The 
need for reform. Yet if the 
public la repeatedly seen to be 
unhappy about the way that 
justice is being administered, 
even judges may be open- 
minded enough to admit that 
there may be some weaknesses 
in the system. 

In the past few months, it has 
been found that some convic- 
tions for murder have a less 
than adequate foundation and 
the cases have been re-opened. 
The man subsequently con- 
victed of the murder of PC 
Blakelock in (he Tottenham 
riots was originally released on 
bail while awaiting trial for 
another murder charge. In 
general, there is a feeling of 
unease that sentences for 
violent crimes against the per- 
son can be too lenient. This 

One problem is the absence 
of sufficient remedies by appeal 
procedures. It should be the 
business of the courts, not the 
Home Secretary, to re-open pro- 
ceedings if new evidence 
becomes available which brings 
an earlier verdict of guilty into 
doubt Not only the accused, 
but also the prosecution should 
have the possibility of appealing 
both against the verdict and 
the sentence. 

But that is not enough. UK 
prisons are overcrowded to the 
point where a higher percent- 
age of the population is in jail 
than in any other European 
country except Turkey. Some 
people are sent to prison who 
could be better dealt with in 
other ways; others are let out 
when they should be kept in. 

Lenient decisions 

Yet a recent series of lenient 
decisions and judicial pro- 
nouncements suggests that 
judges and magistrates do not 
always share the public's abhor- 
rence of violent crime. The 
latest statistics available for 
1984 indicate that of 6,855 males 
found guilty of violence against 
the person, over 33 per cent 
received a non-custodlal sen- 
tence. lut only 27 per cent 
(4,177 out Of 15,408) of those 
found guilty of burglary. Even 
more telling is that out of 


15,176 males found guilty of 
theft, handling, fraud and for- 
gery — a cacL^.^ uwuiiues 

a large proportion of petty 
crime — well over half were sent 
to prison. 

The publicity given to the 
murder of PC Blakelock over- 
shadowed the almost simultane- 
ous news that a young mother 
was sentenced to a week’s 
imprisonment for failing to pay 
more than £30 towards a 
library fine of some £150, The 
£30 she paid! was more than 
her weekly allowance from 
social security. 

Taken together, these two 
Incidents, as well as the statis- 
tics, illustrate that the judiciary, 
which is sometimes lenient 
towards murderers and rapists, 
can be extremely hard when 
dealing with offenders against 
property. 

Awaiting trial 

Sending petty offenders to 

S rfson leads to overcrowding. 

i a single year, from 1984-85, 
the total intake in prisons of 
both untried and convicted but 
unsentenced prisoners increased 
by almost 5 per cent. The 
estimated average time spent in 
custody by untried prisoners 
increased from 15 days in 1956 
to 55 days in 1885. In the past 
20 years the proportion of the 
prison population kept there 
awaiting trial increased from 
9 to 18 per cent, and it is 
estimated that about 10,000 
prisoners axe now awaiting 
trial. This explains a certain 
pressure on judges to grant 
bail as often as possible. 

However, of those now await- 
ing trial in prison, only a small 
minority is accused of serious 
violent crime. A great number 
of petty criminals are refused 
bail only because they are “of 
no fixed abode," which is an 
inadequate reason in the cir- 
cumstances. 

Even as it now stands, the 
law could be operated in a way 
which might afford society a 
greater protection against vio- 
lent crime while reducing the 
overcrowding of prisons by 
petty criminals. A better selec- 
tion and training of judges and 
magistrates is one of the sug- 
gested remedies, but Is bound 
to take time. By contrast, the 
present Bail Act can be 
changed quickly. Its “ presump- 
tion” if favour of granting ball 
should be retained only for non- 
violent crime. 


PRIVATISING ELECTRICITY 


Twice as big as gas, and harder 


A S MRS THATCHER and 
her advisers draw up 
their agenda for the 
next general election, one cen- 
tral question must be: what's 
in it for Sid, that mythical man 
in the street who made a tidy 
profit from the sale of British 
Gas hut year? 

Most Tories see privatisation 
as such a political success story 
that they will be eager to keep 
the pages turning. But suitable 
assets for sale become progres- 
sively scarcer; if the party 
wants to maintain its momen- 
tum in liberating the Titans of 
the state sector, the electricity 
industry must be the next can- 
didate. 

However, as senior ministers 
have recognised, electricity 
presents a series of peculiar 
difficulties. These Include 
anxieties about the ownership 
of nuclear power, the size and 
immobility of the industry’s 
assets, its closely Integrated 
structure, the politics of its 
relations with British Coal and 
the huge appetite for capital 
which it is likely to show In the 
next 20 years. 

Some Conservatives even 
question whether the electricity 
industry represents the high 
tide mark for denationalisation, 
at least for the time bein g. Bu t 
others say that the industry’s 
plans for a major programme of 
power station building present 
the Government with just the 
right chance to steer it on a 
new course, towards a more 
competitive structure and the 
disciplines of the capital mar- 
kets. 

This debate has inevitably re- 
opened the fundamental ques- 
tion: what is privatisation for? 
Many ministers, including Mr 
Nigel Lawson, the Chancellor, 
conceived it mainly as a way of 
improving competition. 

Nevertheless, the Govern- 
ment has drifted into a more 
pragmatic policy of privatising 
large monopolies whole, with 
minim*! efforts to change their 
competitive environment In 
the case of British Gas, 


By Max Wilkinson, Resources Editor 

Z1 



Layfleld report on Sfrswcffl B 
laid much stress oh the pro- 
fessional- competence of the 
GEGB, and it therefore seems 
unlikely that the Government 
would wish to disperse Britain’s, 
nuclear know-how among 
several competing private com- 


ministers opted lor a quick sale 
to short-circuit the delays and 
argument that would have been 
needed to break it op into 
regional companies. 

One obvious lesson for the 
Government should have been 
that any ambition to break up 
the electricity industry into 
more competitive units would 
need to be discussed and agreed 
well in advance. But it was a 
lesson which ministers preferred 
not to heed, partly because of 
the diversions of the miners’ 
strike In 1984-85 and later be- 
cause of the excitement of the 
great gas sale. Even now dis- 
cussion has only readied the 
foothills of policy. 

With assets valued at £37tm. 
the industry’s market value 
might be CIQbn to flfibn corn- 
pared with the £5-6fcn raised 
for British Gas. The scale of 
Its investments is also large. 
The new pressurised water 
nuclear reactor (PWR) at 
Sizewell B in Suffolk wiH cost 
£L6bri, for example; and the 
industry's projections suggest 
that power stations wiH need 
to be built at the rate of about 
one a year for the next 20 
years. 

Some studies suggest the in- 
vestment needed by the year 


2010 might be of the order of 
£50bn, to meet rising demand 
and replace the ageing power 
stations of the 1950s and 1960s. 
Such a programme would be 
comparable to the development 
of tile North Sea oil fields so 
far, but the chance of large 
profits would be small. 

There Is no reson, in prin- 
ciple, why at least part of this 
task should not be undertaken 
by the private sector. Indeed 
this might suit Treasury arith- 
metic, although it would make 
no important difference to the 
call on national resources. 

Privately owned electricity 
utilities are the rule rather than 
the exception in the developed 
world. It was the private sec- 
tor which developed electric 
power in Britain from 1881, 
when tiie streets of Godaiming 
were first illumined by the in- 
visible ampere, right up to 
nationalisation in 1947, when 
560 undertakings were brought 
together. 

The kind of structure that 
existed in Britain before the 
Second World War survives 
and more or less prospers in 
the US, where 3400 separate 
utilities supply electricity to 
small towns and regions. The 
300 of them in private owner- 
ship operate most of the nuclear 
power stations and provide 
about three quarters of the 
nation's electricity. In West Ger- 
many, Japan and Sweden, pri- 
vate companies also play an 
fimportant part in electricity 
generation, although often in 
co-operation with public sector 
bodies. 

In the US and In Sweden, 
quite sophisticated markets 
have been developed for electri- 
city undertakings to trade 
power. Computer technology 
can allow something like a spot 
market to develop with utilities 
bidding for power minute by 
minute as demand rises or falls. 

For Conservatives who be- 
lieve that the spur of market 


forces is needed to stir the 
lumbering bureaucracy of 
nationalised industries, this 
kind of development has great 
appeal But lew people, least 
of all those who have studied 
the US system, believe that 
electricity supply can be left 
entirely to the sway of free 
markets. 

Some form of control Is 
needed to prevent consumers 
from being exploited by dis- 
tribution companies; and regu- 
lation may also be required at 
tiie wholesale level, if a generat- 
ing company has a monopoly 


In France, this is achieved by 
connecting power stations 
through a national grid run by 
a single authority. The CEGB 
operates a sophisticated " merit 
order system," with power 
stations switched in and out 
according to their efficiency 
rating. It is important that any 
privatised system should pre- 
serve this advantage. The cent 
of running an inefficient coal- 
fired power station rather than 
a nuclear plant, for example, 
can be £150,000 per day. 

In the US, smaller utilities 
try to achieve results by 


Present uncertainties must be 
compounded by doubts whether 
government would allow private 
utilities to operate in an 
unfettered market environment 


conventional power stations and 
of arrogance towards potential 
competitors. So could a priva- 
tised: system achieve the best of 
both worlds? 

The starting point must be 
the present strange and un- 
wieldy str uc t ure of the in- 
dustry. The CEGB produces 
power south of the border and 
runs the grid* while 12 autono- 
mous area boards distribute and 
sell electricity. The South of 
Scotland Electricity Board both 
generates and sells. 

The most radical op tion 
would be to sell the SSEB and 
area boards, probably combin- 
ing some of them and hiving off 
some or all of the CEGB’s 
power stations to them. A 
separate, perhaps nationalised, 
would run the trans- 


or even a pow er ful position. 
One difficulty in framing such 
regulations is that an efficient 
system requires co-operation be- 
tween large generating units. 
Big power stations are intrinsic- 
ally better at converting heat 
Into electric power. For this 
reason the typical size of tur- 
bine generators in the UK in- 
creased tenfold in the 1950s 
and 1960s, from around 50BIW 
to more than BOOMW. 

To keep costs down, it is 
also important that the most 
efficient power stations axe kept 
running, whoever owns them, 
while those with higher mar- 
ginal costs are on standby or 
shut down. 

In itng ian fl and Wales, and 


trading power with their neigh- 
bours. However, a. study by 
Professors Paul Joskow and Mr 
Richard Schznalensee, for the 
US Department of Energy, sug- 
gests that for the greatest gains, 
a high degree of integration 
within a large system is needed. 
US regulators find it difficult to 
strike the best balance between 
encouraging free competitive 
markets, while protecting the 
weak against the strong. 

However, even if the CEGB 
earns golden opinions as an 
operator, its management and 
planning of capital projects has 
been much leas successful. It 
lias been accused of being stow 
on its feet commercially, in- 
flexible in its addiction to Ug 


An alternative method pro- 
posed by Mr Alex ’ Benney in a 
report for the Centre for 
Policy Studies would be to 
retain the 12 area boards as 
privatised marketing and dis- 
tribution companies and to split 
up the GEGB info perhaps 10 
private generating companies. 
A free market would then 
develop between the supplying 
utilities and the distribution 
companies. 

The first difficulty is that 
power stations are situated 
mainly near coalfields and on 
the crash and would not divide 
neatly between the privatised 
boards. One answer is aimpty 
to accept that some power 
boards would be expo rters of 
electricity (as the SSEB is now) 
and others importers. Importers 
would have the option to build 
power stations and to experi- 
ment with more imaginative 
schemes of energy conservation. 
Another possibility would be to 
give power boards responsi- 
bility for power stations In dif- 
ferent locations. Though 
messy, this could be fairer. 

The problem of nuclear 
power Is more intractable. The 


In any case the commercial 
risks at nuclear power depend 
so much on political factors, 
that ' it might prove un- 
attractive to me private sector 
—at least until Britain has a 
trade record of building nuclear 
reactors to time and budget. 
Certainly in the- US, -no new 
nuclear plant has been ordered 
without cancellation since ’ 
1973. 

However, If the CEGB 
remained as a mWfr sector' 
nuclear authority, perhaps con-. 
trolHng 80 per emit of capacity, 
it would be a difficult bedfellow 
for private utilities. If its near.: 
generation of PWBs turns dut : 
to produce cheap electricity, as ; 
claimed, the private sector” 
would have little. incentive tor. 
invest. Even a company which 
believed the state nuclear pro-; ' 
gramme to be an economic 
disaster would be uncertain 
whether to invest in coal plant r - 
Ttns is partly because, however . 
much they eostto build, nuclear 
reactors- ' are cheap to ran. 
Private competitors may four, 
therefore, - that government , 
would opt for concealed capital-, 
subsidies rather than raising 
prices. . 

These uncertainties most be 
compounded by doubts as to r 
whether government would 
allow private utilities to operate 
in an unfettered market environ- 
ment. Would they, for example, 
be free to Import large turbine 
generators from abroad, or to 
import large quantities of cheap 
coal from, say South Africa, hr 
even from Queensland? . And 
would government stand aloof - 
if, as in the US, a persistent 
policy - of low investment - by 
utilities were to threaten higher - 
prices or even power shortages 
in the future? 

In any offer for sale, such 
doubts moat be compounded by 
the difficulty that, unlike British 
Gas, tiie proposed power boards 
would te unable to produce an 
audited trade record. 

Perhaps, these difficulties 
could be overcome by a com- 
bination of careful planning and 
an attract i ve selling price. How- 
ever, the reorganisation would 
almost eertainly take longer 
than one Parliament. 

For this reason alone; the 
break-up plan seems unlikely 
to find favour with the Govern- 
ment. The main al te r na t i ve 
would be to vutall tiie rectorial 
boards and the CEGB together 
as one giant regulated utility. 
However, unlike British Gas. It 
would have a monopoly over 
production as well as distribu- 
tion and sales. 

Even the monopoly solution 
might leave . uncomfortable 
doubtr about how a private sec- 
tor CEGB would behave towards 
tiie British coal industry, 
towards nuclear power and to- 
wards coal imports. But if it 
were subject to major restraints 
on all these issues, why bother 
to privatise it? An answers, on 
one side of paper, should be 
sent to Downing Street as soon 
as possible. 


Garcia's 
beguiling songs 

President Alan Garcia of Peru 
was an undoubted hit daring 
his state vasat to Mexico last 
week— hut 4t was not dear 
whether the cheers were for his 
debt strategy or his singing. 

Garcia, who once scraped a 
living in Paris as a busker with 
a mainly Mexican repertoire, 
suddenly burst into song before 
the television cameras at a 
foreign ministry reception. 
“ With or without motive," he 
crooned to a local nuuriacM 
group, “ with or without money, 
I always do what I want, and 
my word is the law, because I 
continue to be the king.” 

That seemed an admirable 
summary of Garcia's unilateral 
decision to Emit Peru’s foreign 
debt service payments to 10 per 
cent of its export revenue, and 
even seemed to Incorporate 
some of the elements of fantasy 
ascribed to the strategy by his 
Mexican hosts. 

Mexican debt strategists 
reckon by threatening to 
default but paying in foil, each 
country can squeeze its credl- 


CHRESTIg; 



"It would cover that damp 
patch in the haD— probably 
cheaper than getting the 
builders in again" 


Men and Matters 


tors for concessions and foods 
—each as Mexico's recent 
$7.«bn comm er cial bank syndi- 
cation. But Garcia's message 
still has enormous appeal. 
Peru’s economy grew last year 
at two and a halt times the 
average in Latin America. 

So waa he singing a siren’s 
song of debt default? Not a whit 
disturbed by the speculation, 
Garcia conducted another 
impromptu singatong for his 
fans before be left, telling a 
TV Interviewer that “he who 
does not sing; does not feel . . . 
and he who does not feel has no 
right to presume to liberate 
anybody.” 

“ When Latin America unites 
in one great chorus,” he 
thundered promisingly before 
Mexico’s Congress, bringing al- 
most tearful deputies to 
applaud him with shouts, 
according to one report, of 
"Viva Brazil," the other Latin 
megadebtor which last month 
declared a moratorium on 
interest payments after run- 
ning out of cash. 

Bankers need not start 
trembling yet, however. 
Mexico’s rubber-stamp deputies, 
the local financial press noted, 
cheer just as loudly when Pre- 
sident Miguel de la Madrid 
delivers a contrary message to 
that of Garda. 


Bull-headed 

The world computer Industry’s 
new joint venture, the Honey- 
well Bull group owned by Bull 
of France, Honeywell of the 
US and NEC of Japan, has 
emerged with a French- 
dominated boardroom — four 
out of nine directors, with tiie 
chairmanship held by Jacques 
Stern, the Bull chairman. 

The balance of directors 
roughly mirrors the share- 
holding structure of the group 
in which Bull’s stake will rise 


by the end of next year to 
65.1 per cent It equally 
reflects the driving force of 
Stern, plucked from private 
Industry during the French 
Government’s nationalisation 
programme In 1882, and a con- 
sistent champion Bince then of 
France’s need for international 
computer group. 

Two other Europeans, Brian 
Long, chairman of Honevwell 
of the UK, and Carlo Peretti. 
head of the group’s Italian 
activities, are also going on to 
the 10-man management com- 
mittee. This will be responsible 
for the day-to-day operations of 
the business, will be In charge 
of integrating the new com- 
pany, and w should create 
better planning of international 
strategies," says Long; 


Long’s husbandry 

There Is another Brian Long 
who is also looking forward to- 
day to some better figures from 
his computers. He is the man 
who took over as ma n aging 
director two years ago of the 
once high-flytog Cambridge 
computer company. Acorn. 

Long, 43, keeps a model of 
a combine harvester on his desk 
— just to remind himself that 
he still knows less about elec- 
tronics than about farm equip- 
ment. He previously worked 
for Massey Ferguson in Canada 
and the US. He came to Acorn 
in 1985 after it had twice been 
rescued by Olivetti, which now 
has a 79 per cent stake. 

Long, whose business career 
followed a childhood in Angola 
—where his father was a mis- 
sionary — and a degree in min- 
ing engineering, has pruned 
Acorn’s activities and cemented 
ties with Olivetti. Though, 
apart from a few Italian prints, 
there is little sign of Olivetti’s 
Influence in Acorn’s spartan 
premises in Cambridge. 


Acorn’s gradual improvement 
is expected to be confirmed 
today with a modest profit on 
turnover of £50m compared 
with a £22m loss in 1985. Long 
says hia relative lack of know- 
ledge of computers may have 
helped him: ” Z have made 
derisions based on business 
logic rather than razzle-dazzle 
technology.” 


Panel game 

Whatever else may be said 
about Carlo Ripa de Meana, the 
European Commissioner whose 
responsibilities include culture 
-and something could be said 
of his view on Saturady that a 
80-minute speech is “brief”— 
he knows how to coin a canny 
appeal. 

At the closing of toe Com- 
mission’s three-day conference 
in Florence on culture, econo- 
mics and technology, he enm* 
up with just the thing that the 
Italian, French and British 
Governments need to do to 
make 1988 a real whizz for the 
city of Berlin when it holds the 
Cultural Capital of Europe tag 
for the year. 

If toe divided city cannot be 
unified, perhaps the Battle of 
San Romano, as painted in the 
mid-14th century by Paolo 
Uccello, can be, he suggested. 
The three phases of the battle 
once covered tire walls of a 
ground floor room at the Medici 
Palace in Florence. In the last 
century, toe Medici— perhaps 
In need of a penny or two— — 
sold them off separately so that 
today there Is one portion of 
toe battle in the National 
Gallery, in London, one in toe 
Louvre in Paris and one in the 
Ufflri in Florence. 

In one of those sparse 
rhetorical flourishes which 
were denied a full flowering by 
the need to keep the speech 
brief. Rlpa de Meana urged that 
“recomposition of that 
stupendous pictorial complex 
, . . as a tangible testimony of 
the common will for reunifica- 
tion of the two Berlins and the 
two Germanies.” 


Observer 


NOTICE OF REDEMPTION 

NICOR Overseas Finance N.V. 

Has CaBed for Redemption afite 
19jj% Convertible Subori Himted Dcbcntoca 
Due May 1, 1995 

thsrtpnrsmiat lo the terms of the Indenture dated 
o’ (tte "Redemption aU of its outstanding fOK% Convertible 

*■ Continental Bank/ Interna tion a l, One Liberty Plaza, New York, NY 1 0006 
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± Ban ^ Branch ’ l«2 Queen Victoria Street, London EC4V4BS. 

e. Continental Bank/ Branch, 10 Avenue Montaigne. 75008 Pari*. France 
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8 * h ” hrf * r “' H. WX Box 5033, 

k SSiSSSi L oxen‘boa , x *A, 1 Boulrod ***. 

aSSSSiSs&sSi&fg 

SS^SSSssw: sSs 

addreuCcs) of ibe postals) so ranted. “®“ I 5P*taed r with il 

Dated: March 27, 1987 


KICOH Oiuju* Finance N , 1 





Financial Times Monday March 


Foreign Affairs 

— i 'in whirl, 4h. 


SK&SSJS 


^tem will look iikh when ft 


ewtae traSrtS 

SftjS*. ^eatest aSoSSJS 

questions 

hS? 5 ?. s rg mflcance may be at 
Thi ® ^““wenon became 


to tbe comnie 

-?» wg* srSiS 

£S.S ^l" < * «U drategc 

bSE??he ( ^ 

sSSSStes 

.-gift**®** re^arcfc pro- 

Naturally, they m 'gjE®j£& 
J£e J^^uuation of iu SJSe 
JJ^Pons; but since they 
«nUa not conceivably have 
■Sreed the things which they 
Wthey (almost) agreed, them 
°f nuclear weapons 
must really have been a mete- 

v f£ icle tor some other 
. theme or themes. 

The- Soviet Union could not 
conceivably have agreed to the 

all baUiatic 
nuclear missiles (US version). 

gw would have left 
t he U S with a substantial super* 
Mnty in nuclear-armed bomb- 
ers. 

The US could not conceivably 
nave agreed to the elimination 
of all strategic nuclear weapons 
(Soviet version), because this 
would have left the Soviet 
Union with a vast superiority 
in shorter - range nuclear 
weapons with which to domi- 
nate the European theatre. 

Alternatively,' If the super- 
powers’ nuclear renunciation 
was tacitly contingent on all 
other countries agreeing to a 
nuclear-free world and accept- 
ing appropriate levels of intru- 
sive inspection, then the 
“ agreement * looks little better 
than an indulgence in empty 
hypocrisy. 

But since the two most power- 
ful men In the world did not 


es 


travel to Reykjavik for the pur- 
pose ' of mouthing meaningless 
Words, they most have intended 
some metaphorical ™p?tHpe or 
meanings. Just what those 
meanings were must ' remain 
open to rival and uncertain 
interpretations. 

At the most pedestrian level, 
Mr Gorbachev was testing the 
strength of XYerident Reagan's 
commitment to Stax War*. He 
explored every possible level of 
unclear disarmament, up to 
100 per cent, and found that 
then was none which would 
induce Reagan to put Star Wars 
on the table. Presumably, this 
must rule out any agreement 
to cut strategic nuclear offen- 
sive fbrces, since the two are 
indissolubly connected. Until 
Mr Gorbachev changed his mind 
earlier this year. it also seemed 
to rule out a Euromissile agree- 
ment 

But Gorbachev's proposals at 
Reykjavik may also have been 
a political metaphor: even H he 
did not seriously intend the 
elimination . of aQ strategic 
nuclear weapons, perhaps this 
was a parable for an implied 
offer of a mutual non-aggression 
pact; in which the territory of 
each ' superpower would be a 
sanctuary from attack by the 
other. Sw* * mwt tm ) sarictm y 
agreement might well suit the 
security interests of the US and 
the Soviet Union, but it might 
be very threatening to the 
security of Western Europe. 

Alternatively, perhaps Mr 

Gorbachev was making a meta- 
phorical offer of a far-reaching 
political reconciliation between 
East and West, an acknowledge- 
ment tint neither side has any 



conceivable interest in military 
aggression and that neither side 
could possibly benefit from con* 
diet. 

Some of these interpretations 
may he fanc ifu l, overstated or 
premature. But since the literal 
accounts we have been given 
cannot be true, we have to 
e xa m ine alternative versions; 
since the surface agenda la not 
the real agenda, it is a mistake 
to be obsessed by it 

Thus with Mrs Thatcher's 
talks with Mr Gorbachev today. 
No doubt the conv ersa tion will 
be dominated by talk of mls&xles; 
Mrs Thatcher will argue force- 
fully that the Russians should 
reduce their short-range nuclear 
weapons as wen as eliminate 
their intermediate-range mis- 
siles, and she will patiently 
explain why Britain eaxmot pos- 
sibly be expected to put Trident 
on the negotiating table, Mr 
Gorbachev will no doubt be 
equall y wel l-armed with con- 
trary arguments. 

Yet in reality the central 
issue at stake is not about argu- 
ments, nor even about 
The Euromissiles crisis id 1981- 
1983 was not about a few 
hundred missile warheads, but 
about the collision between 
Leonid Brezhnev's reckless 
brutalisation of detente, on the 
one hand, an d Ronald Reagan's 
raucous anti-Communism, on 
fh fl other. At stake in *hi« 
tussle was the role and align- 
ment of Western Europe; when 
the tussle was over, Europe 
remained aligned with the Nato 
alliance, but the bipartisan 
defence consensus in Britain 
and West Germany bad been 
broken. 

In the same way, the essential 


issue in Mrs Thatcher's talks 

with Mr Gorbachev today is not 
a few more missiles here or a 
few less there, but the political 
relationship between the Soviet 
Union and Western Europe and, 
.even more fundamentally, the 
political relationship between 
the Soviet Union and Eastern 
Europe. 

Opinions differ why the 
detente of the 1970s fell apart 
American hawks may overstate 
their case when they Claim that 
ft was a simple fraud perpe- 
trated on a gullible western 
public; on the other hand, it is 
obviously true that the political 
Ingredient in detente was much 
«B»n»r than the arms control 
ingredient, certainly on the 
Soviet 'aide, probably on the 
American tide as welL The 
record proved conclusively that 
the Helsinki agreement did not 
imply a change of Soviet atti- 
tudes on, say, rights. 

Today, the contrast is poten- 
tially very striking. Not merely 
is the arms control agenda much 
more spectacular than in 1969- 
1972, but for the first time it 
seems conceivable that there 
may be Just enough of a poli- 
tical counterpart, in the various 
domestic reforms pat forward 
by Mr Gbrtmehev, to lend 
credibility and predictability to 
a somewhat better East-West 
relationship. 

It is these political factors 
which will determine the nature 
and significance of an arms 
control deal, not the other way 
round. Mr Gorbachev's prede- 
cessors abased human rights, 
because that was an intrinsic 
put of the way they wanted to 
ran the politico-economic 
system. If Mr Gorbachev is 
starting to ease the 


rights problem, it Is because 
that is an intrinsic part of a 
diffe rent way of running the 
system. 

Mrs Thatcher will no donht 
say her piece on human rights; 
but she must be aware, what- 
ever she tells the television 
cameras afterwards, that her 
influence here will be abso- 
lutely negligible. Privately she 
Should be glad, because an 
internally generated easing of 
human rights abuses has a much 
better chance of sticking. 

Bat the heart of the problem, 
the central issue which will 
determine the outlook for arms 
control in Europe, is the poli- 
tical future of Eastern Europe; 
this is the question on which 
Mrs Thateher Is bound to focus 
most attentively. 

The condition of Eastern 
Europe is, after all. the main 
symptom of the geopolitical 
threat posed by the Soviet 
Union. This post-war expansion 
of the Soviet empire Is synony- 
mous with aggression. This 
East European empire remains 
permanently unstable, because 
the system does not work and 
the Soviet Union has not 
acquired and cannot acquire 
popular legitimacy: as demon- 
strated in East Germany, Hun- 
gary, Czechoslovakia, and. in 
Poland many times. 

Therefore the Soviet Union 
has to keep large military forces 
in Eastern Europe, partly to be 
able to bold down the satellites. 
But since these forces signifi- 
cantly outnumber Nato’s forces, 
they have helped propel the 
nuclearisation of Europe, first 
in the West; then in the East 

Unless the political dilemma 
of Eastern Europe is eased, 
there is not likely to be any 


Lombard 


Euromi stile agreement which 
will enhance the military 
security of Western Europe, 
because Nato will not be able 
to match Soviet superiority in 
short-range nuclear weapons 
and conventional forces. This 
may mean that the Euromissile 
talks will faiL 

By contrast, the prospects for 
a EuromissUe deal, and the 
verdict on Mr Gorbachev's 
underlying attitude towards 
Western Europe, will become 
much more favourable if he 
appears to be making significant 
progress in replacing military 
repression with political legiti- 
macy In Eastern Europe. 

This will be very difficult. In 
declaratory terms, Mr Gorba- 
chev has seemed to be urging 
the same openness and recon- 
struction on the satellites as he 
is recommending at home. Bat 
the initial reaction from the 
leadership in Prague and East 
Berlin was hostile, as one 
might expect from people whose 
careers might not survive very : 
much openness. 

A serious attempt to restore 
political legitimacy in Eastern 
Europe might also be dan- 
gerous, because it must in- 
crease, even if ever so slightly, 
the risk of a rejection of the 1 
-Soviet system, or even the 
rejection of the Soviet Union. 
That was the sin of the Hun- 
garians in 1956. But unless 
legitimacy can be enhanced in 
Eastern Europe, there will be 
no end to the confrontation. 
Which is why Mrs Thatcher will 
be asking Mr Gorbachev at least 
as much about his forthcoming 
visit to Prague as about his 
views on Euromissiles. 


A Euro-dilemma 
for Britain 

By Quentin Peel in Brussels 

WHEN BBTIT5H negotiators practically every other aspect 
come to Brussels to state their of the Community budget For 
case, or stake their bids, on any every £1 contributed, it gets 
area of EEC policy-making, they an estimated £1.23 spent bade 
tend to be regarded with in Britain, 
respect by their continental That say the Whitehall 
counterparts. The Whitehall mandarin^ only goes to show 
machine ensures that their posl- how honest their position is. 
tion is normally well-prepared They are not out for the cash, 
and reasonably coherent, It is but for value for money, 
often also extremely inflexible. It is not so simple. The lack 
Last week’s debate on the of any real machinery in 
future of co-operation in re- London for central research 
search and development coordination, and hence for 
between the 12 member states— deciding on national, priorities, 
on tim proposed Ecu 7.71m means that the co-ordination 
(£5.4bn) five-year “ framework consists of unstructured hag- 
programme " put forward by gling between the departme n t s 
the European Commission-— was involved. No one wants to con- 
a classic case. Mr Geoffrey cede cash from their budget to 
Pattie, the Minister for Infer- something decided in Brussels, 
mation Technology, arrived with even if the EEC programme 
a rigid brief hammered out may actually be a better deal, 
between a whole host of Mini- Add to that the Treasury 
striea: Ecu &2bn, and not an attitude to EEC spending. The 
Ecu more. Through most of a old mentality remains para- 
day and the whole of a night he mount: that any money going 
refused — was unable — to budge to Brussels is taken straight off 


from that brief. 


the departmental budget for its 


Everyone else made conces- national programmes; and any 
skms: those inclined to big money coming from Brussels is 
spending, like Italy and Spain, similarly deducted, so that it 
came down to a new money is never actually “ additional.” 
package of Ecu 5Ata. The The attitude is compounded 
other budget disciplinarians by the British budget rebate 
went up: France eventually deal agreed, with great fanfare, 
accepted the compromise, and a t Fontainebleau In 1984. That 
West Germany got within hail- g^es the UK roughly two-thirds 
ing distance— at Ecu 5-2bm Not of its net contribution to the 


Mr Pattie. 


Community back the following 


His problem was not so much year, in the form of reduced 
that he did not like the pro- payments (somewhat less than 
gramme, although it is by no two-thirds, but the calculation 
means perfect The most is complex), 
important parts — the Esprit in- For every pound, or ecu, that 
formation technology co-opera- Britain pays to Brussels more 
tion, the Race programme in than it receives, something like 
telecommunications, and the 60 pence will come back to the 
Brite projects in industrial Treasury next year. But if the 
technology are well regarded EEC should conceive of a pot 
both in Whitehall and by the icy which benefits Britain — like 
major privat e s ector partici- research, for example— then 


pants in the UK. 


the net contribution will be 


Rather he was caught be- s m aller. An individual British 
tween two immovable objects In company may benefit from a 
the public expenditure debate full £1 spent in Britain, but the 
in London: a range of depart- Treasury will be 60p worse off. 
meats in cluding his own Trade So there is no incentive to sane- 
»tij Industry, Energy, Educa- tion any new programme, no- 
tion and Science, Environment less perhaps the benefits are 
and Health and Social Services, overwhelming, 
all desperate- to preserve their What benefits does Britain 
own natio nal research pro- want from . the EEC? Some 
grammes and the Treasury, would argue that even if total 
backed by the Cabinet Office, research spending produces a 
imposing rigid spending rules net return, it still means some- 
on anything to do with the one else is deciding research 
EEC. priorities, which may not coin- 

The Br itish position is bard dde with the national welfare, 
enough to understand for the But if there is no real eo-ordi- 
rest of the Community: the UK nation of a national research 
gets a dear net benefit from strategy, bade in London, who 
EEC research spending, unlike can honestly say that is so? 


^energy 

option 


•JC a:wsw 
•’ *" *22:1 


■ Ess/, jf-a 


Letterstothe Editor 


From Mr J. Stern and 
Mr R. Bel grave 
Sir, — Your leader, "How to. 
' counter Open's revival * (March 
24), starts well but ~ finishes 
rather limply in its plea for in- 
creased acceptance of nuclear 
power. There is, as you rightly 
point out, increasing concern in 
the OECD countries about fail- 
ing indigenous production and 
growing dependence on Opec 
oil, with the United States being 
the key to the- problem. - The 
bullet that botir your leader 
and the Reagan administration’s 
recent study refuse to bite, is 
that these trends are a- direct 
result of f ash ion able OECD 
Government policies of “ leav- 
ing it to the market " to make 
decisions. The market is not 
concerned with energy security. 


the cheapest form of energy at 
the cheapest price. If this is 
Opec oil, so be it. If this means 
another oil price shock in- the 
1990s, so be it 

As you point out, however, 
there is no reason why history 


need necessarily repeat itself. 
A tripartite study condu cted b y 
our programme and institutes 
in Tokyo and Washington DC 
suggests a variety of measures, 
appropriate to individual coun- 
tries: Japan and France have 
evidently chosen the. nuclear 
option. Elsewhere in Europe, 
public opposition reinforced by 
the Chernobyl accident has 
(despite the British derision to 
go ahead with Sizewell B) made 
this option less certain. Across 
the Atlantic, public opposition 
combined with an extremely 
adverse commercial and regute- , 
tory environment makes ft .very 
difficult to predict when, or 
indeed whether, a newnnelear 
power plant will be ordered in 
the United States. . . . , . , 

One way. to prevent another 
major discontinuity to the 

1990s might He to e st abl is h a 
price of oil which provides a 
« floor * lor OECD tavestnients 
in energy. In 

chance of being adopted by all 
OECD countries, such a floor, or 
« minimum import price, tor 
on would have to be set fairly 
£>w r probably not much above 
gi 5 pgr barrel, and to itself 
W-oold not guarantee that such 

investments wouldgo aheadLR 

would, however, 

that investments 

SSSTtert be totally raidfi*- 
mtoed and might well CMMJ 


St the price did not toH below 
5e floor. At the same ri®*? 
would not be open to the «je& 
jSSf voiced to your leader, to 
raxed tariff- 

Tbere are. of course, many 
abort term objections to even 
thia minimal price support, and 
MmjSungpolltiflal reasons tor , 
SSenototaa but this wotod 
be one way to JBjrjjJJ 
concern that undernrvestment 


to the OECD win Undermine 
energy security in the 1990s. 
Jonathan Stern, - 
Robert Belgrave. 

Joint Energy Progra mm e, 

10, St James’s Square, SWL 

Abolish some 
ta* reliefs 

From Mr C. Beattie QC 
Sir, — Could the Government 
to next year’s Budget and Par- 
liament to the Finance Act 
bring themselves to do what is 
best for the country instead of 
the things which they think 
most likely to secure the elec- 
tion to Parliament of party can- 
didates? What is needed is the 
abolition' of ail reliefs from tax 
except those, such as the in- 
come tax personal allowances, 
which are designed to exdude 
large numbers of small cases 
from UabflUy. The collection of. 
extra tax through abolition of 
reliefs would lead to reduction 
of- the standard rates of the 
various taxes which most 
people would then suffer. 

C. N. Beattie. - • 

34 Old Buildings, 

Lincoln's hm, WCZ 

Penalty on the 
job changer 

From Mr W. Beardmore. 

Sir,— Mr J. Ferguson. (March 
24) outlines the disadvantage ip 
job leavers regarding changes 
In Jump sum tax benefits as out- 
lined in the Budget and I 
endorse his sentiments. 

A further important Mil 
damaging effect, however, Is. 
Involved with the change to 
the basis of arriving at final 
pension on retirement, with par:. 
tiwiiar reference to leavers. 

Under rules prior to March 17 
x pension of two-thirds salary 
paid from all sources, could be 
obtained provided the person < 
had completed 10 years service 
in his last pensionable employ- 
ment and had not retired prior 
to his normal retirement date. 
This is now 29 years which 
means tfc&t any perron changing 
jobs with under 20 years to 
woric before normal retirement 
date cannot under any circum- 
stances, except M health, obtain 
two-thirds pension at - normal 
retirement date. 

What is the T agic of the 
: Government in imtitutlng legis- 
lation to improve pensions fop 
leavers by 5 per cent per annum 
on paid up benefits, and of 
encouraging voluntary contribu- 
tions to improve pension pro- 
visions when it partly nullifies 
such action with the 20 year 
rule. . 

I have never seen any refer- 
ence to pension articles to the 


N/NS formula which governs 
final pension under Occupa- 
tional Pension Board rules. 
Following this change I would 
recommend pension fund 
administrators and prospective 
Job leavers to examine the 
implications. Perhaps tire Chan- 
cellor will also re-examine them 
too. 

W. W. Beardmore. 

63 Hazelwood Road, 

Dttgudd, Derby. 

Taxation of 

insurance 

From Mr T. Bennett 

Sir,— I have been alarmed by 
the inland Revenue's attempt 
(March 19) to alter the basis 
of taxation of the UK’s insur- 
ance industry, apparently with- 
out Parliamentary approval. 

' The' attack is on two fronts. 
The Revenue is attempting to 
bring both historic and prospec- 
tive income Into current taxable 
profits. This may- please a 
revenue hungry Chancellor to 
the short term, but the longer 
term implications Just ca nno t 
have been considered. 

The British insurance indus- 
try has followed the normal 
fundamental accounting con- 
cepts of accruals and prudence. 
Thus income and e xp e n se are 
only taken into profit and loss 
accounts so far as they relate to 
the current accounting period; 
profits are not recognised until 
they have been realised and full 
provision is made for all cla im s 
as soon as they are notified. 

The Revenue la now trying to 
bring historic revenues into 
eurrent profit by c hang i n g tim 
basis upon which it has allowed 
companies to defer premium 
'income which does not relate 
to the current accounting 
period. 

Much more worrying, and 
crucial to the role of London as 
a centre of toe world’s insur- 
ance market is its attempt to 
force loss reserves discounting 
on to toe insurance industry. 
Discounting deliberately re- 
duces too provisions to pay 
Claims outstanding by an 
amount equivalent to the invest- 
ment income that might be 
derived to the future from such 
funds set aside. 

Thus British companies, 
uniquely in Europe, will be 
forced by the Inland Revenue 
to pay tax on profits that have 
been artificially created by 
deliber ate under-reserving. This 
contrasts starkly with conditions 
in France, Germany, Sweden or 
Holland where insurance com- 
panies are encouraged to make 
tax-free transfers to catastrophe 
claims equalisation reserves to 


ensure that tax exactions, do 
not -prevent a company from 
having sufficient funds to meet 
all 

This should be seen against 
the background of notorious 

uncertainty to making rinima 

provisions, even now companies 
frequently find themselves 
inadequately reserved. Dis- 
counting would reduce further 
the reserves held to pay claims 
(on a liability aooount by 80 
per cent to 40 per cent), and 
therefore policyholders* security. 
I expect two direct conse- 
quences. In these days of easy 
communication and fax 
machines it Js.no more difficult 
to write reinsurance to Amster- 
dam than It is to Westminster. 
Onerous taxation will drive risk 
taking operations out of London, 
Paris, Amsterdam, Munich and 
Stockholm will grow further to 
importance, and income-— at 
London's expense. With that 
income will go some of the 
230,000 Jobs that the industry 
provides. Some companies will 
be bankrupted by holding inade- 
quate provisions to meet 
expected claims. 

The Chancellor and the 
Revenue would be better 
advised to introduce the catas- , 
tropfce equalisation exemptions 
common on the Continent. 

Tom Bennett. 

Rosemary Mount, 

FhmweU, 

Wadftunt, Sussex; 


Capital goods 
and VAT 


From the Bead of Information, 
EM Custom and Excise 

Sir, — There appears to be 
misunderstanding in some quar- 
ters over the proposal concern- 
ing input VAT on capital goods 
announced by the Chancellor on 
December 19. In particular, in 
his letter (March II) Mr K. 
Mackintosh Bays that VAT input 
tax on capital goods will be 
reclalmable over five years. This 
is not true and X should like to 
put the record straight for the 
benefit of other readers who 
may be worrying unnecessarily. 

The proposal is that the 
deduction of VAT will be made 
still at the time of purchase but 
the continued entitlement to 
deduction would be subject to 
review annually for the follow- ; 
ing five years. If, during that 
time, toe proportion of input 
tax. deductible by the business 
changed, or if the degree to 
which the asset was used in the 
making of taxable supplies 
altered, an adjustment might 
have to be made. 

The proposal has yet to be 
finalised but is likely to apply 
only to partly exempt traders — 
less than 1 per cent of the total 
VAT trader population. HM 
Customs and Excise will consult 
on the proposal before introduc- 
ing the necessary implementing 
changes, which will be, in any 
case, subject to Mtoisterial-and 
Parliamentary approval 
Graeme Hammond. 

King's Beam House, 

Mark Land, ECS. 


■ ' vc*"- • 

W-,v? W:-Jj 7.-' 


11 


Britannia Arrow 

Holdings PLC 

1986 Preliminary Results 

PROFITS UP 50 PER CENT 



1986 

1985 

Pre-tax profits 

£29.5m 

£19.7m 

Earnings per share 

U.4p 

8.8p 

(My diluted) 

(10.4p) 

wap) 

Extraordinary profits 

£4.6m 

£5;3m 

Ordinary dividend proposed 

5. Op net 

4.2pnet 

Funds under management at 
year-end (including those of the 
INVESCOpartnershipinl986) £15, 850m 

£4, 85.0m. 


The directors recommend. a final ordinary dividend of 3.2p net a share 
which* together with the interim dividend of 1. 8p net makes 5. Op for the year 
against 4.2p net for 1985. 

Trading profits for 1986 are up 50% with earnings per share increased by 
29% . All sectors of the - business performed well 

The Group's investment management operations have been strengthened 
by the acquisition of MIM Limited and the investment in the INVESCO 
limited partnership consolidating the position of Britannia Arrow as a lead- 
ing independent international financial services group. Results .for the first 
two months of the current year are most encouraging and we look forward, 
with confidence, to another highly successful year. 


Britannia Arrow is going from strength to strength. 


Geoffrey Rippon 

Chairman 


Registered Office: 

80 Coleman Street 
London EC2R SAD 
Telephone; 01-628 6080 
Telex 894709 
Fax: Ql-588 08S2 


















NELSON BAKEWELL 

CHAfHtRED SURVEYORS 
London 01-629 650l'Chekreftrfa2C25MG6 


Hunting 

Gate 


4444 


Roderick Oram 
on Wall Street 

Movement 
rather than 
direction 


US BOND dealers bad one major 
consolation as prices fell suddenly 
on Friday following central bank in- 
tervention to underpin a crumbling 
dollar. Movement was more impor- 
tant than direction. 

At last there was volatility and, 
volume for astute traders to make 
money again after months in which 
the largest securities market in the 
wold had become one of the most 
placid and least profitable. 

A strange torpidity had settled 
over the government securities 
market this year as trading volume . 
dwindled and price volatility faded 
away to its lowest level in a decade. , 
The US 6010010/5 low growth/low 
inflation rat gave investors little 
reason to Muffle their bond portfol- 
ios. 

So sofid is the noefumge consen- 
sus among economists, deale r s 
have found it hard to make a com- 
pelling case for investors to boy or 
sell US bonds. One Wall Street deal- 
er expressed disdain for those of his 
customers tempted into “inefficient 
markets” for the likes of UK and 
West German government bonds. 

Almost in desperation, dealers 
have been forced to trade among 
themselves to an unprecedented de- 
gree to keep their tasting machines 
ttekfag over. But even that has its 
Bents. 

"With each quiet day, we lose one 
more trader willing to take a posi- 
tion. He’s scared there is not 
enough volatility for him to trade 
out of any tosses,” a dealer said. An- 
alysts believe some signs of damage 
might show up in Wall Street firms' 
first-quarter results. 

Chances are high that last week’s 
flurry will be short-lived. Hie dol- 
lar's bouts of weakness are frequent 
but brief and would only bine a 
more durable impact on the bond 
market nearer the next Treasury 
refunding in the middle of May. H a 
shaky dollar discouraged Japanese 
buyers, bond yield would rise. The 
band market needs a yntfcpH 
ffhjmg * in the rf nwwH /' economic 
outlook, for better or worse, to stim- 
ulate trading in a big way. Taking 
that, it is likely to fell back into apa- 
thy. 

Hie average daily trading volume 
of US government securities by pri- 
mary dealers was only S&lba in 
the week ended March 13, the latest 
reported. This represented a 23 pa 
cent fall from the average Level last 
year and a 35 per cent drop from 
the record week last March at the 
height of the markets rally. Since 
then the number of primary dealers 
has risen to 40 from 38, and the 
Treasury has added some S200bn of 
paper to toe $ 2 J. 00 bn market 

The true level of i n v estor interest 
has fallen much further. So far tins 
year, Alliance Capital Management 
has been trading less thin one 
quarter the volume of bonds it did 
last year, said Ur Wayne lydd, 

ftf ffwwl inwww 

rifles for the New York-based firm, 
the woricTs largest non-hank asset 
manager. 

“WeVe had to use alarm docks to 
remind us to check the prices once 
an hour." 

Last Friday was one of only A 
handful of days tins year when 
bond prices have moved more than 
a point In contrast, one day last 
April saw a 3% point jump in the 
Treasury’s 30-year bond as inves- 
tors anticipated a discount rate cut. 
The following week it plummeted 
six paints. 

Such volatility most seem fikp a 
dream to traders in Chicago's Trea- 
sury bond futures pits. Placid mar- 
kets have given investors and deal- 
ers tittle reason to hedge their bond 
positions with futures. Several days 
this nwnth , the volume of Chicago 
Board of Trade bond futures con- 
tracts slumped to around 80,000 
from a normal level of roughly 
230,000 and a record of 387,262 set 
18 months ago. 

The downturn has heightened 
fears at the Board of Trade that its 
arch rival, toe Chicago Mercantile 
Exchange, will overtake it The 
Mods wmphwsiw on innovation, 
particularly in the equity area, has 
helped its average daily volume to , 
rise from 88 per cent of the Board of 
Trade's last year to 80 per cent in 
the first two months of this year. 

Traders at band futures have 
tamed wary, said Mr Chris Heh- 
meyer. managing partner cf Gold- 
iBnh wg imfl Hohnuy nr, at ftp end trf 
ang thw qiitof; day fa Hia pifa. 
people are worried about making | 
personal Bwanrial lyim wHm wrtu ~ I 

Although some local speculators 
have switched to playing stock at 
dex futures, Mr Hehmeyer thmght 
it would be a while before the B- 
qukfity of toe bcwid futures pits 
would be font 

The Chicago futures and New 
York cash markets showed an Fri- 
day that they could spring aKve at 
toe slightest stimulus, but toe 
threat of further tranquillity hangs 
ewer them. “You get itchy. You wor- 
iy you've slipped into s semtemna- 
tose state and will miss something,” 
a bond dealer said. 

"Jeez, I hope it aint permanent,” 
added another. Td have to get an-* 
other job.” 











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Ferruzzi plans flotation 
to fund latest purchase 


BY ALAN FRIEDMAN IN ULAN 

FIALY*S Ferruzzi group, wfakh last 
week agreed to pay S830m to 
acquire the European corn-starch 
and glucose operations td CPC In- 
ternational, toe US grocery prod- 
nets group, pIbm to around 
S400m in Stance in order to help fi- 
nance the deaL 

The Ravenna-based agri-industri- 
al group intends to float on the Pa- 
ris bourse 49 per cent of European 
Sugar, its wholly owned French 
holding ntwwpawy which fontr rik 51 
per cent <rf B6ghin-Say, the French 
sugar concern. European Sugar vrill 
mriiA toe European operations of 
CPC, co mpri si ng 13 factories in 

WH inlriM wil awwiil iw wiiiiwf 

of just under $3bn. 

At present E u rope an Sugar is 
owned by Eridania, Ferrurafs Ital- 


ian «p gpw produce. Hie timing of 
the share issue has not been an- 
nounced, bat it is ex p ected to the 
next few months. 

Eridania, which Is s e pa rat el y 
quoted, at the weekend reported a 
01 pa emit increase in 1088 net 
pr o fi t s to L&Sbn (K&L7xn) on flat 
sales of L707bn. 

Mr Rani Gardim, who heads F!er- 
ruzri, is already considering a sec- 
ond-stage financial operation in 
France which could raise a further 
SZOQm. Together these would all but 
offset toe 1630m purchase price of 
CPC InternathmaFs European 
standi and glucose interests while 
Retaining an nltimate 51 per cent 
con tro lling stake. 

This second (monition would 
come several »ftpy toe Ri- 


ds flotation, of European Sugar. It 
envisages the sale of up to 40 per 
cent of CPC Holding, a new vehicle 
containing the interests purchased 
from the US com pan y , and which in 
toe interim would have under the 
foil ownership of European Sugar. 

The two fund-raising operations 
would leave Eridania with 51 per 
cent of European Sugar, which in 
turn would own stakes of that size 
in CFC Holding and in Bcg^rto-Say. 

Ferruzzi is understood to have 
held informal talks about the sale of 
minority nbmrimHmg n hr CPC 
RnMing with MtotobtaM of Japan, 
Sudzucker of West Germany, .and 


to acquire toe CFC^uropeen inter* 
esta before last weeifr CPCftma- 
zi deaL 


Greek-Turkish friction eases 

BY DAVID BARCHARD M ANKARA AND ANDRIANA ERODIACONOU M ATHENS 


THE THBEAT of armed dashes be- 
tween Greece and Turkey in toe Ae- 
gean Sea ova Turkey's claim to be 
allowed to prospect for oil to toe 
seabed east of toe Islands of Thas- 
sos and Lesbos, receded over the 
weekend. Tensions eased after Tor- 
key declared it would not prospect 
outside its territorial waters if 
Greece did not. 

In Athens, toe North Aegean Pe- 
troleum Company (NAPC) said it 
had frozen its plans to start drilling 
east of toe island of Thassos by 
March 28. Hie Greek Government 
moved last nxmto to block the origi- 
nal drilling plans <d the NATC con- 
sortium by tabling a co n tro v ersial 


bOl allowing the state to acquire a 
controlling interest in NAFC, and 
tons avert a possible dash with 
Turkey. 

K was toe NAPCs original plans 
to drill which led toe Rakish Gov- 
ernment to ticease the stateewned 
Turkish Petroleum Corporation to 
explore fa ofi to ^nteniational was- 
ted around three Greek islands. 

The Turkish dedskm to bade 
down -it seemed that last night the 
T urkish prospecting vessel Stamik 
1 was stin in Turkish coastal waters 
and not around the islands of Thas- 
sos a Lesbos - coincided with the 
return to Itarkeyaf Mr TorgatOaU 
the Prime Minister. He had been in 


toe US for 55 days for heart surg- 
ery. . 

Neither country therefore looks 
Hkdy to c ontr a v ene the sncaDed 
Bone Protocol of 1878 under which 
Greece and Turkey agreed to ref-, 
rain from any actions such as oil 
prospecting cm the Aegean contin- 
ental shelf. 

The Greek armed forces re- 
mained an alert yesterday, but the 
four US military bases in Greece 
were operating normally. -. 

The dispute has ess entiall y been 
frozen rather than resolved, how- 
ever. 

H- ■! ■wni'aM J *»- — - 9 


Panama 
fleet 
expands 
to record 

By Kevta Brown, TYe na port 
Correspondent, h London 

PANAMA'S fiag-ci-convenfence 
iiW jy m g fleet has expanded by 
iam gross tons toe tad of 
1986 to a record total of . 59.2Sm 
gross tons, Panamanian aoathori- 
ties will announce today. 

The increase reflects an accefe- 
rating flight from the registers of 
toe traditional n «d i i iM 
as shipowners seek to remain com- 
petitive in toe face of a' worldwide 
over-supply of shipping. 

Hie flags of amvomentg, led by 
Liberia and Panama, offer redneed 
registration costs, togetoa with 
substantial savings in the cost of la- 
bour through the • use of Third 
World crews. 

Panama doesnot publish 
of the ownersh ip of ships on its reg- 
ista, bid most of toe vessels trans- 
ferred this year are believed to be 
owned in Norway and Japan. 

Shipowners to both countries 
have been increasingly vocal in 
mmplaiiring aboat the costs of op- 
fla g *. 

The Norwegian register declined 
by 6m gross tons last year, and the 
Japanese by -lira gross tins, ac- 
cording to figures produced by the 




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These figures exrinde ships of 
less than 100 gross tons, howevra. 
White the official Panamanian fig- 
ures cover all vessels on the reg- 


Portuguese political crisis looms 


BY D IANA SM ITH flf LISBON 

THE SURVIVAL of BwtugaTs mi- 
nority Social Democrat Govern- 
meat now looks uncertain after the 
Prime Minister Prof Arrfbal Cavaco. 
Silva said at the weekend that be 
would not ne go tiate concessions 
that wri gftt, persuade the Sn c iiwl fato , 
toe largest opposition party, to ab- 
stain from a left-wing motion of 
censure scheduled for Friday. 

Socialists support far the 
fcuMiwi by the fnrmttr hwwi of state 
General Antonio flamaMn Hanes's 
maverick Democratic Renewal Par- 
ty (PRD) ensures victory and auto- 
matic downfall of the tf-monto-old 
Government The Gov e r nm ent 
holds only 85 of parfiamentfa 290 
seats and has no large party to its 


right to help R send off the left-wing 
action. 

Mr Victor Constancio, the Social- 
ist leader, who described PRO'S rno- 
tion as "irresponsible because it of- 
fers no constructive alternative,’ of- 
fered notto vote wife the left if Prrf 
Cavaco Sfiva committed himarif to 
a pact with the Socialists that 
would reduce tendon between Gov^ 
ernmest *"*1 parliament per- 
mit negotiations of importaut is- 
sues. Such a pact, he hinted, could 
keep the Government in office until 
its four-year term expired in .1980. 

Prof Cavaco Silva’s harttfeaded 
styte prectudes negotiated conces- 
sions. His refusal to yield in 1985 to 
Socialists with whom his party then 


shared a coalition Government pre- 
cipitated the October 1985 snap gen- 
eral election that brought him to 
power. Ever since, he has hod ahra- 
ave relations with pariiament 

His anwiffingness to negotiate 
under threat of a motion of censure 
paves the ground for yet another 
Portogoeresa^genaaletectoa- 
tbe fourth in eight years. 

The PHD'S provocation d a crisis 
when the Portuguese economy and 
finances woe in better shape than 
they have beat for years has dis- 
mayed the electorate, Tl per cent of 
which recently instated that it dai 
not want early elections, nod the 


* %■ jp pftTMWTffn hw i t^iyp. 

nage has been achieved against ttw 
background of a continuing 
in the size of the world fleet and 
stiff competition from a number'd 
newer registers, mriwfin g Cypms 
and the Isle of Man. 

Panama »cr«th«f its regi st r ati on 
fees in September and claims to be 

the cheapest shipping .register to 
the wadd despite similar reductions 
implemented by 

Panama’s D i rec t o rate of Mari- 
tbi» and Consular Affairs has also 
tried to strengthen toe appeal of the 


Thu P wrMimjiTrijm flaw j hiw typ qf 

the worst safety records in toe 
world, but officials say a compulso- 
ry tfZBUiii nation system for 'officers 
in troduc ed last year should help to 
improve standards. 

Shipping report. Page 4 


World Weather 


UK pressure on US 


£ l 


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W 57 EMnW 
S 41 fra 
17 U Own 
IB M FnttWt 
M S3 FwW 
M 57 Em 
II H BMW 
S 41 Gtepa 
II « Srnmtf 
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. Continued from Page 1 

A draft letter is app a re ntl y circu- 
lating in the n*»yp « p Adadniatra- 
tfoa. It is unclear whether ft will be 
dispatched by the President, who is 
fearful of embarrassing Mr Naka- 
sose before their talks. 

There are fears in Was hi ng ton 
thata letter - coming on top of the 
semiconductor dispute — could un* 
necessarily inflame relations be- 
tween the two countries and grave- 
ly weaken toe political position of 
Mr Nakasone. 


US. US ofliciab have said toe du- 
ties would be -applied to a wide 
range cf Japanese etectronic prod- 
ixds from mid-April with the aim of 
stepping some S30Om worth of im- 


UMr iHMak \-h 
S'SwaSute-Snm 


flak said the import dutie s mold 
have a laige impact on their sales 
and profits. NEC, Fujitsu and Hitar 
rhi | thret* ofthi* ipafa Cdyaaies to 
be.affected, all derive about a UHh 
of their sales from exports to the 


Were worth $lL2bn. 

Hie Minister of Trade and Indus- 
try, Mr Hajime Tamara, said mi 
Saturday toe US retaliatioii 
was a most reg ret ta ble develop- 
ment 

toe- pact togood faito]*ILtoe*l§ 

went ahead wito its sanctoms, “to* 
Government cf Japan wfB take qt> 



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U.-JZ, ZS/e 

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jS&fSJHS!®* UPSETTING 
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SECTION II - COMPANIES AND MARKETS 

FINANCIAL TIMES 


Monday March 30 1987 


Selectivity develops in Australian dollar sector 


BOND dealers, 
frMb^ed in their attempts to gat* 

Spates: 

find h fe more eigoyeSe^it 

AnfffrflUn*i . 


Wg ggy. 

' reassured bytile firm- 
J®® rf_Ute AataKai SmSS 
chaniwTHny famdsigto 

the sector. 

JSL-p *5?*® ** has been 
pejang me buyers fa the 

danaest * c interest 
^ mAMtra lia^wfaicfahastfaeef- 

i^of kn^tag supply m the Euro- 
q°nd sector. Last week, domestic 
Australian dollar Commonwealth 

hands shcwl hdt». WAZ^rTrr^ 


-nl ,.. . ~ *•» “““ ow OHMS 

points in yield. 

This h as reduced the a rmi-kTH y 
of mw g» - a crucial factor in this 
swnr, where most issues are swap* 
“nren - as swap marine spreads 
h ave na rrowed in relation to Com- 
nionwealth bonds m anticipation of 
further interest rate falls. 

This suggests that fewer barxuw- 

ers wffl be ahle-to tap the market It 

yso nieans that issues laimrii^H a 
few weeks ago, some of which carri- 
ed 15 per cent coupons compared 
with coupons nearer 14 par cent on 
more recent issues, have teornno 


easier to sell 

Dealers say that ai current terete 
investors are Hkely to start resist- 
ing issues for aH Init tte rarest and 
best-bleed Tn a ™n fc»t still 
d o m inated by retail buyers in West 
Germany and Belgium, preferences 
may not relate very cfauety to credit 
quality. 

Jfor instance, last wed; an issue 
foe Walt Disney met an enthusiastic 
response tram the market, bat a 
deal far IBM did not, even though 
the pricing of the IBM Australia is- 
sue did not seem overly tig ht com- 
pared with the terms on which Walt 
Disney had come. 

But a ltho u g h retail investors are 
stQl the backbone of Australian dol- 
lar bqyfag; others «™»inHTng profes- 
sionals have participating in 
the market recently. 

A bond launched a few weeks ago 
for die World Bank, for in stance, 
“opened new doors for the market," 
according to one dealer, as it at- 
tracted an unusual ^ ™hwI of de- 
mand from institutional investors 
who had not previously bought Aus- 
tralian dollar paper. 

The main appeal of foe issues is 
their double digit yields, which look 
extremely attractive compared 
with, say, returns available on D- 
Mark domes tic hninrf« at the mo- 
ment 

These yields are obtained at the 
expense of a currency risk, of 


course, and many i n v estors found 
their fin gers badly burnt when the 
Australian dollar, and the Euro- 
bond market with it, famM**! last 


Bat coupon levels at the moment 
provide a ramfo r t a hlo wishifm 
against a currency depreciation, 


encouraging factor that foe Austral- 
ian Unit hBS Iwn a ppr e ciating 
against the US dollar. Some have 
beat looking for it to reach the 70 
OS cent level 

Although most investors prefer 
fultycouponed issues, some houses 
last week were seeking to enlarge 
their sources of d w Fn JM id by bring- 
ing zero coupon honds to the mar- 
ket These attract some investors 
chiefly because, since they do not 
pay coupons, they cany no rein- 
vestment risk. Additionally, there 
are tax advantages in some coun- 
tries: 

Demand far these types of issues 
fe not reliable, however, as a couple 
of issuing houses found last week. 
An issue for ijnwipdiiniir Rhein- 
lend-Pfalz met an indifferent re- 
sponse, even though the name has 
an appeal for West German retail 
i n v est o r s . 

But a zero for Nordic Investment 
Bank fared worse, despite its tri- 
pfe-A rating, as Australian dollar 
bgers are not accustomed to deals 

for name* fy nm tintt r ogirwi 


Hectic buying of West German 
government bonds by Japanese in- 
vestors wary of investing in dollar 
bonds boosted tbs D-Mark Euro- 
bond market last week. Even 
though tittle of it spilled over into 
Eurobonds, it reassured investors 
of continuing foreign demand for D- 
Mark paper. 

Prices rose by as much one point 

as investors moved in to pick up 
cheap paper. Demand was sus- 
tained by an almost complete ab- 
sence of new deals. This was be- 
cause issuers were not expe ct in g 
such a pick-up in the market two 
weeks ago, when the time came to 
register new deals with the Bundes- 
bank. A flurry of deals, therefore, is 
expected soon. 

• A number of measures designed 
to boost Eurobond liquidity, im - 
prove syndication techniques, were 
passed by the International Pri- 
mary Market Association (IFMA), 
the trade association for this Euro- 
bond primary market, at its »*"nnal 
general meeting: last Friday. 

JPMA fe recommending that lead 
managers erf Eurobond Issues 
should register as reporting deal- 
ers, as defined by the rules covering 
the secondary Eurobond market 
which wnw ° wHn force at the begin- 
ning of this year. 

Tl» move is designed to reduce 
worries among investors about the 
fotore liquidity of new issues. 


Turner Broadcasting falls deeply into red 


BY WILLIAM HALL M NEW YORK 

TURNER BROADCASTING Sys- 
tem, the US television group which ; 
lack over MGMAJA Ente rtainment 
last year following an aborted bid to ■ 
win control of the CBS network, 
lost $1 87.3m in 1986 and has warned 1 
flu* it experts large losses for ‘‘fee 
forseeable future." 

The highly leveraged company, i 
headed by the controversial Mr Ted 1 
Turner, lost $652m in the < 
three months of last year compared ■ 
with net income of $62m in the : 
same period of 1985, even though its 
revenues had nearly doubled to : 
S128A&L 1 

The fun year lass, equivalent to 1 


510.97 per share, compares with net 
income of $L2m in 198&. 

The figures underline the finan- 
cial toll that interest charges are 
taking on Mr Tamer's broadcasting 
empire. 

The company took on a heavy 
debt load to finance its SL5hn acqui- 
sition of MGM/lIA in the fon) 
quarts- of 1988 Turner’s net inter- 
est charges of 559.7m were more 
than double the pre-interest operat- 
ing profit of 5Z7.&1. 

Company officials noted that the 
1988 losses were generally as fore- 
cast In additian to foe increased in- 
terest expease, a non-recurring loss 


of j p*fc"" resulted from the acquisi- 
tion of MGM/OA and from the 1986 
Goodwill Games in Moscow. 

Mr Turner said that *with the ac- 
quisition and restructuring of the 
MGM oper ati on behind us, we look 
forward to aggressively improving 
oar operating results: 

“Non-recurrence of the Goodwill 
fiarnm and reductions in certain 
other unprofitable sports program- 
ming will ensble the broadcast seg- 
ment (rf our business to significant- 
Jy imp r o v e its operating perfor- 
mance in 1987“ 

hi fete January Mr Turner ap- 
peared to have resolved the group's 


fjrwmriail rriqto by a greemg fn flflnte 

his majority ownership of Turner 
B w^miwwHng fn exchange for a 
S550m capital injection from a con- 
sortium of cable TV operators plus 
Mr Kirk Kerkotfen, the former 
owner of MGM/UA. Turner Broad- 
casting shares, which have ranged 
between 512% mid 529%, dosed at 
520% cm Friday. 

Mr Turner says that with the 
pending private placement of equi- 
ty, the group win be aide to “stabi - 1 
tise and strengthen 1 ' its capital ; 
s tru cture <wH attempt to reduce its 
debt service re quirem ents through j 
EBfinandng. ' 



Morgan Guaranty Trust Company of New York 

U.S.S100, 000,000 


Under the secondary market 
rules, each reporting dealer has to 
inform the Association of Interna- 
tftmal Bond dealers every evening 
of its dosing bid and offer quota- 
tion, huH the highest lowest 
prices at which it has dealt during 
the day, in each bond in which it fe 

committed to "tub* TOft r lcatg 

No Hnfo for implementation of 
the IFMA recommendation has yet 
been set, however. This is because 
so for many timbres have had diffi- 
culty putting the systems in place to 
conform with the AIBD require- 
ments. 

IPMA is recommending that the 
reporting suggestions which initial- 
ly cover dollar straight bonds - 
ghftnld lyimft into effect L *nm (be 
day following allotment of bonds. 
Lead managers are expected to re- 
main registered for a minimum of 
12 munthn after a b ond been, is- 

sued, and co-lead managers for a 
minimum of six months. 

IPMA has no power to impose its 
recommendation, although devia- 
tions must be announced at the 
time of invitation telexes. 

IPMA also agreed cm Friday on 
the implementation of a c o m p u ter 
communications system for use 
during syndication of an issue. This 
system is based an a tetephtmo Hnt 
between c omputer s which will car- 
ry the details of a new issue which 
are now wwfa»inwi fe an invitation 


uet VB 2 S seas man M 2 L 2 

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Prw 3JB.1 XSTA SOU WJ 


ins smi teres sums seas 
smv nu*«J» leoes «uu&i s/res 
00 m mens 7011 *m *4 news 

PW» ISJSCi «Pi 4 , 10.2 T< IM 

555 twBd i w Tom 

UBS 1 * 198:1 BSPS 11104 

Pnv iseres ssttsa mjuoA 

otter issues assess sMMJ 

Prte MU WJ 3 SS 1 M 

WtekteHmiiaBieer Some: aw 


Agusta back in black 
with LlObn profit 


BY ALAN FRIEDMAN IN HHLAN 

AGUSTA the Italian aerospace 
company which took pert fe last 
year's unsuccessful European con- 
sortium fad for Westland Helicop- 
ters erf the UK, has returned to prof- 
it for the first time in three years. 

The company achieved a LlObn 
(S7.7m) consolidated set profit for 
1986, against a LflObn loss in 1985. 

Turnover of Ll.OOlfan was down 
by L124bn because of the weakness 
of the US currency against the Bra. 
Tte earnings recovery comes two 
years ahead of schedule — originally 
the c om p any ’s restructuring plan 


called far a break-even result in 
1887 and a return to the Mack in 
1988. 

This follows heavy losses in re- 
cent years. The 1984 loss was 
LMAnt, while the 1983 deficit was 
L175bn. 

The t umi c an d at the Agusta 
group - which consists of U operat- 
ing companies —was helped by tre- 
bled profit s from Costruziani Aer- 
omtutiche G. Agusta, the wain hell- 
copter {seducing subsidiary, its 
profit contribution was I24bn. 




^43 BULMAUl: LONDON SW1Y 




EURONOTES AND CREDITS 


telex. 

It is designed to speedup fee pro- 
cess of syndication and prevent co- 


tbe terms of a deaL At the moment, 
they are g ener ally c o nt acted by 
telephone, and then sent an invita- 
tion telex later. 

IPMA member ship qu a l ifi cations 
have been tightened up, in response 
to wmnwnc timt the rapid expan- 
sion of qualifying firms has been i 
placing strains cm its consensos ap- 
proach to decision malriwg 

To quality, a house now has to 1 
have run the books on 12 new fe- 1 
sues during the two preceding cal- ' 
endar years. The previous mini. , 
mom was six itow issues. j 


BP’s call for $5bn 
shows advantage of 
syndicated loans 


BRITISH PETROLEUM'S call last 
week for international banks 
to deliver up S5bs of takeover 
finance in a matter of days showed 
that, despite its problems, the syn- 
dicated loan market can still deUver 
what other markets cannot, writes 
Stephen FMfer to London. 

“No other market in the work! could 
provide $5bn for BP in five days," 
Mr James Fuscbetti, 
dire ct or of Bfmgsn Guaranty, 
which fe arranging the fi""Tv*ng, 
cm the day the was announced. 

The reaction to foe financing - 
which is in effect partly a bridging 
loan and parity a back-up to a pro- 
posed special US commercial paper 
programme that could reach SZbn 
to Kfan - seemed generally positive. 

Reservations ex p ressed by some 
of the roughly 60 invited banks 
were, on the whole, anwered by a 
furiy generous pricing. 

For the four-year revolving cred- 
it, BP wfll pay a % paint margin 

Over TonH^n wrte r*Mnlr n ffw arf 

rates so that backs get % point if 
the credit is drawn. There is provi- 
sion for BP to seek tenders for cash 
advances. 

Given % a mo u nt and BPs de- 
sire tor speed in imrirfring fts 
S7.4bn offer for the 45 per emit of 
Standard Oil shares it does not al- 
ready own, BP was probably well 
advised not to squeeze the margins 
further, particularly fe the ahsmm 
of any front-end fee. 

Takeover finance, particularly m 
the ravaged ofl sector, raises some 
bankers* e ye br ows , and S5hn fe no 
mean amount of debt Indeed 
Moody’s, toe US bond rating agen- 
cy, immediately placed BPs debt 
ratings under review for a possible 
downgrading. 

Ibis is unlikely to affect the bank 
financing, however, if bankers can- 
not justify joining the deal because 
of the pricing, they can probably do 
goto older to cement a relationship 
with the world’s timrdfergest ofi 
company. 


Morgan paid on Friday ft 1 "* it 
was stai on target to dose the deal 
ter Thursday and to an April 7 


Elsewhere. Chemical Bank 
launched a S150m note issuance fa- 
cility for Certainteed, the US-based 

building products company which is 
57 per cent owned by SatofrGobafe, 
the newly privatised French glass 

and material*! grr uip 

The five-year financing, winch 
Will hwflk up a fjwnmwrrial paper 
programme, carries a facility fee of 
10 hacig pofeis, and 8 sanflar mar- 
gin. Utilisation fees range up to 10 
basis points, and there fe a front- 
end fee of 10 basis points for a $15m 

take. 

Union Electric, a Missouri-based 
electric and gas utility, fe setting up 
a 5150m term loan facility to be ar- 
ranged through Swiss Bank Cbrp 
International. 

It has a mat uri t y of four years 
and a margin of 02 p o i nt over la- 
bor. The borrower may convert 
amounts it prepays into a revolving 
credit with an annual w ww wi i iiiM 
fee of 12J> basis points. 

In the commercial paper market, 
County NafWest was mandated by 
Rowntree Mackintosh, the UK food 
and confectionery company, to ar- 
range a £2Q0m, five-year multiple 
option facility and a nep a re t e 
£ 200 m commercial papa pre- 
gramme. 

Some €150m of toe option facility 
fe co mmi tted. It carries a five basis 
point nndeswriting fee, alO basis 
point on nwipp- iu and 
utilisation fees of up to 22 basis 
points. 

•Salomon, a French manufacturer 
of skiing gear, said it had launched, 
subject to French official a p pr oval, 
a 575m commercial paper pro- 
gramme to be backstopped by a 
syndicated revolving credit of the 
same size. 

Morgan Guaranty is arranging 
tiie credit and will be joined by 
Credit Suisse First Boston as dealer 
on the paper programme. 


Morgan Guaranty Trust Company of New York 

U. \S. $150,000,000 


7.25% Deposit Notes due 1991 


7% Deposit Notes due 1990 


Morgan Guaranty Ltd 


Alcemene Bank Nederland N.y. 
Bankers Trust International Looted . 
BanqueNattonale DEPARTS 

GOMMERZBANKAKITENGESELLSCHAFr 

Credit Lyonnab 

Deutsche Bank Capital Markets Dmtted 

Generals Bank 

IBJ iNTERNATTONALljanTED 

Merrill Lynch Capital Markets 
Morgan Stanley International 


Bank of Tokyo International Ltmtied 
Banque Bruxelles Lambert S. A. 
Banque Paribas Capital Markets Limited 
Credit Commercial de France 
C itEDrr Suisse First Boston Limited 
EBC Amro Bank Looted 
Goldman Sachs International Corp. 
LTCB International Ijmited 
Mitsubishi Trust International Looied 
The Nikko Securities Ca, (Europe) Ltd. 
Nomura International Ijmited 


Nippon Credit International Lsmited Nomura International Looted 

OrionRoyal Bank Limited - - Salomon Brothers International Looted 

Shearson Lehman Brothers International Sumitomo Trust International Limited 

Swiss Bank Corporation International I^mtied Union Bank of Swtizekland (Securities) Ijmited 

SG. Warburg SECURnffis Westpac Banking Corporation 

WoodGundyInc Yamaichi International (Europe) Limited 


These stcurilies(u?iwlrq^rrrdundi , rtheSea s nt ie sAcitf 1933 (mdnw\-notbeoffired. 3 o!dordrtj{*red 
in, orlOWUiomdsOrre^riUsf^thelfnitedSttaa. This announcement appears as a mailer of record onto 


Morgan Guaranty Ltd 


Algemene Bank Nederland N. V. 
Banque Nahonale de Paris 
CRED fr Commercial de France 
Daiwa Europe Iahted 
Dresdner Bank AsraNGESEixscHAFr 
Merrill Lynch Capital Markets 
The Nkko Securities Ca, (Europe) Lid. 
Orion Royal Bank Looted 


Banque Bruxelles IambektS. A. 
Commerzbank Akhengesellschaft 
Credit Suisse First Boston Lzmeied 
Deutsche Bank Catoal Markets Looted 
EBC Amro Bank Xjmtied 
Morgan Stanley International 
Nomura International Limited 
Salomon Brothers International Looted 


Swbs Bank Corporation International Looted Union Bank of Switzerland (Securities) Limited 

S. G. Warburg Sec uri t ies Yamaichi International (Europe) Limited 


These securities arer&iy&tten^undertheSeairiliesActtf 1933 emdmc&notbe($&vd,soldordeliver*d 
12 th March, 1987 in, or to nationals orresu&ttsi^ the Unit ed St atn . Thiscui no unce me rUappearsasarnattergfrecordonfy 




Financial Times Monday March 30J3S7; 


22 


INTERNATIONAL CAPITAL MARKETS 




UK GILTS 


Sentiment dominated 
by sterling and 
opinion polls 


THE BRITISH Government 
bond market was last week 
dominated by two influences— 
sterling and political opinion 
polls. 

After the dip below 9 per 
cent yields, there had been a 
prevalent school of thought that 
farther progress would depend 

on an improvement in the 

governments standing in the 
polls and hardening evidence 
that Mrs Margaret Thatcher 
would be able to go to the 
country in June and win. 

The other crucial factor was 
the continuing stability of 
sterling on the foreign ex- 
change market which would 
keep overseas investors happy 
to continue building up their 
holdings of gilt-edged stock. 
One of the reasons behind 
sterling’s strong performance 
since the Paris accord In late 
February had been the stability 
— if not ne rves-induced stagna- 
tion— of the major currencies 
focused on In that agreement. 

The argument goes that, if 
a foreign exchange dealer’s 
hands are tied on trading die 
dollar, the Japanese yen and 
the D-Mark, because of the fear 
that central banks will Inter- 
vene against the speculative 
flow of the market it is best 
to trade in high-yielding cur- 
rencies such as sterling and the 
Australian dollar. 

This Is indeed what had hap- 
pened until last week. But 
then a combination of fears 
about increasing trade friction 
between the US and Japan and 
the usual flows associated with 
the Japanese year-end trig- 
gered the first real test of die 
Paris accord. Central banks, as 
threatened, did indeed inter- 
vene. The cumulative effect 
of all that activity was to leave 
the yen at a post-war high 
against the dollar and there 
could be more volatility to 
come. 

Zn the midst of this, sterling 
has tost some of its impreg- 
nability. It remains fairly firm 
but the last thing foreign in- 
vestors want is any sign of in- 
creased volatility. 

Widespread leaking late on 
Wednesday of the Today 
newspaper's opinion poll 
thoroughly undermined gQts 
and sterling. Both were then 


bolstered fay February's much 
better than expected balance 
of payments figures, which were 
not helped by any of the 
change of mind on invisibles 
which we have become accus- 
tomed to, but boosted by, a 
genuinely good export perfor- 
mance. 

The good effect of the trade 
figures Was then more than 
wiped out by the rumours 
which started circulating that 
a poll due to be published in 
the Dally Telegraph on Friday 
was to confirm the Today poD 
evidence of a surge in support 
for the Liberal/Social Demo- 
cratic Alliance. It did. 

It seems likely that opinion 
polls will continue to dominate 
sentiment in the gilt market 

The return to yields above 9 
per cent at the longdated end 
means there is now a political 
risk premium and this 

may have to get bigger to attract 
demand. 

The good run by the index- 
linked sector was another ago 
that the market’s supreme con- 
fidence in the government*? 
electoral prospects had 
crumbled somewhat The Bank 
of England’s issue on Friday 
of £250m of long-dated index- 
linked stock looked as though 
It was tailored to specific de- 
mand and should find buyers. 

The big risk for the market 
is that foreign investors might 
lose their nerve and sell their 
substantial holdings of gilts 
before or around the calls on 
some of those Issues in April 

and May which amnmnt to 

£U9tm. 

However, it appeared last 
week that foreigners, particu- 
larly the Japanese, were still 
baying gilts, although not in 
huge amounts. 

It may be that Japanese fund 
managers are understandably 
not as attuned to shifts in poli- 
tical mood as their British coun- 
terparts are. But it is also 
likely that they will be looking 
at the gilt market in a more 
long-term strategic light. 

The fortunes not only of gilts, 
but crucially of the US Treasury 
bond market, may rest to a large 
extent on the portfolio decisions 
made in Japan next week at the 
start of the new fiscal year. 

JanetBusb 


US MONEY AND CREDIT 


Bond market shaken from slumber 


THE US BOND market was 
shaken out of its recent long 
slumber late last week by alarm 
hpiiB in the international arena 
signalling renewed tensions in 
the foreign exchange markets 
and cm the international trade 
front 

In the foreign exchange mar- 
kets the US dollar fell te a 
SS-year low against «» 
Japanese currency of Y147J.5, 
despite substantial intervention 

by major central banks, raising 
concerns that US interest rates 
may have to rise to bolster the 
value of the dollar. 

Meanwhile, the news that 
President Ronald Reagan was 
imposing sweeping trade sanc- 
tions on Japan, m retaliation 
for the alleged dumping of com- 
puter chips, raised worries in 
some quarters that the Japanese 
might retaliate by being less 
aggressive buyers of US govern- 
ment securities. 

The US Treasury’s "min! 
refunding" of two, four and 
seven-year notes went reason- 
ably well but by the end of 
the week Investors at the 
auctions were showing sizeable 
losses after US bond prices 
dumped on Friday by more 
♦ban a point, pushing the 
closely watched US government 
long bond yield up to 7.65 per 
cent 

US interest rates have floated 
up to their highest levels of 
1987 and. while last week's 
movements hears no comparison 
with earlier volatile periods, it 
is a reminder than an extension 
of the recent stability in the 
US financial markets cannot be 
taken for granted. 

Mr Paul Volcker, chairman of 
the Federal Reserve, whose 
comments are often so opaque 
that they could mean just about 
anything, is reported to have 
told a group of flnandiii ana- 
lysts in Washington last week 
that "enough is enough" as 
far as die dollar’s recent decline 
is concerned. 

But, despite such an unusually 
forthright statement, the credit 
markets were unsettled by the 
apparent futility of the central 
bank efforts to stabilise die 
dollar. Mr Scott Pardee, vice 
chairman of Yamaicfai Inter- 
national (America) and a 
former head of the New York 
Fed’s foreign exchange opera- 
tions, was particularly critical 
of the Fed's intervention. 

" The operation conducted 
this week did not instill fear in 
the markets, because it has 
been too predictable. The 
market is convinced the US 
Government wants the dollar 
lower, and many people are 
short dollars," he told the New 
York Times. 

Despite the worries about the 


dollar, there was continued 
good demand for several new 
* issues last week which 
Coco-Cola Enterprises 
to increase the size of its offer- 
ings fay 9100m to $500m and 
Unocal to increase the amount 
raised by Its two note issues 
from $3u0m to $450m. - 

The 10-year note issue was 
priced to yield &834 per cent, 
or 160 basis points above the 
comparable US Treasury issue, 
and its seven-year issue was 
priced at par to yield 8.5 per 
cent, or a 145 basis points 
spread above comparable US 
treasuries. 

Coca-Cola Enterprises’ two 
Issues, both rated A3 by Moody’s 
and AA minus by Standard & 
Poor's, were split between a 10- 
year note issue, which was 
priced to yield 7.928, and a 30- 
year debenture priced to yield 
8-807 per cent, or 115 basis 
points over the comparable US 
Treasury issue. 

Coca-Cola Enterprises, the 
world's biggest bottler of soft 
drinks, is a relative newcomer 
to the corporate debt markets. 
Coca-Cola spun off a 51 per cent 
interest last year but the con- 
tinuing linfcfl with its famous 
parent, which retains a 49 per 
cent stake, probably w pUip its 
ability to raise finance on good 
terms. By contrast, another 
new face jn the debt markets, 
Seven-Up, which was sold by 
Philip Morris late last year 
issued 10-year senior sub- 
ordinated notes on a yield of 
UL125 per cent 

Among other corporate debt 
issues last week, a $ 100 jn five- 
year note issue (rated A3 by 
Moody’s) for Hertz was priced 
to yield 8.06 per cent, or 102 
basis points over US Treasuries, 
whilst Smith Barney reports 
that a 9250m 80-year debenture 
for Time “sold very well." The 
issue, rated AA3 by Moody’s, 
yielded &84 per cent; or 115 


baric points above die compar- 
able Us Government paper. 

The following economic sta- 
tistics are due to be released 
this week, listed along with the 
market's median expectations as 
surveyed on Friday by Money 
Maiket Services of Redwood 
City, California. 

• Tbs Index of Leading Indica- 
tors for February (due Tuesday 
850 am EST) is expected to 
have rebounded after January's 
surprisingly steep 1 per cent 
decline. The median forecast 
is for a 0-6 per cent rise with 
estimates ranging from plus 0.1 
per cent to plus 1 per cent. 

• The weekly money supply 
figures (due Thursday 450 pm 
EST) are expected to show a 
$lbn increase in Ml with esti- 
mates ranging from a drop of 
$2.1bn to an increase of $2»5hn. 

• The March employment data 
(Friday 850 am EST) is expec- 
ted to continue to portray an 
economy that is expand ing 


moderately- The civfliantmem- 
ploymen t rate is forecast to 
remain unchanged at 6.7 per 
cent, its average for the past 
three months, as increases in me 
labour force are expected to 
have matched employment 
gains. Estimates range from an 
unemployment rate of 65 per 
cent to 65 per cent. N o&tan n 
navroU employment is forecast 
to have risen by 225500 which 
is somewhat below the strong 
gams in January and February. 
Estimates range from an in- 
crease of 175,000 to an increase 
of 300,000. 

• The Federal Open Market 
Committee (FQMC) meets on 
Tuesday and Wednesday to 
chart monetary policy for die 
coming weeks. The minutes of 
the February FOMC meeting 
will be released on Friday at 
450 pm EST. 

W illiam Hall 


US MONEY MARKET RATES (%) 

USC IWMfc **** 

Friday a**®® 


— W-ratttifhr 


Fad Funds (weekly norm) 
Three vnontb Treasury btts 

Six-month Treasury MU* 

T hree month prints CD* 

30-day Commercial Paper..—. 
90-day Cwanrarctel P*pf — ■ 


030 

6-83 

sja 

6 M 

M3 


8.08 

SAX 

SJ56 

&ia 

MO 

6.15 


MB 

58* 

MS 

S.1S 

MS 

MO 


« M 
6.EZ 
6.54 

TJ» 

7.70 

7.10 


531 

fi*S. 

S4K 

MI, 

MB 

M 




US BOND PRICES AND YIBDS (%) 


Last 


1 weak 4wfc0L 


'•n 


Sevan yar Tnaau/y 
g y aw Treasury 


Wsw «Hmr ~A~ Fkmcte 
Naw "AA** Long utitfty ...... 

Raw ~AA~ Long imlu a lria l 


116* 

ZZ." n/a 

N/A 

-W._ N/A 


— ■nr; 

week 

Yield 

rage 

•H . 

. * 

7.18 

7.02 

847 

> h 

7.77 

734 

7.62 


7.66 

742 

737 

. 1 

8.15 

.840 

830 

. 2* 

849 

830 

8.70 

• 1* 

845 

8.60 

845, 


Soon*: Satomoni Bro* (wwjgg* 

Uanay Soppip In «■ mk andad Man* 16 Ml «w» by 8l5bn to*WQ3BH. 


100 


Nftt TOKYO BOND INDEX 

performance, iwptx 

Avaregs 

. .. »Wd 

28/3/87 (%> 


Last 

waa fc 


Ulrica 2Si*ta 


OVBHfl 


136.05 4.13 T36JS 13238 PMB 


Ifastidpai Bonde 

Govemms 


Bank Dafeanotres 
Cnpoma 


YffrdanamlHtad Faming Banda... 


U8 

13844 

138.47 

13281 

136-38 

137.15 


3.73 

4.64 

4.88 

3*2 

6.13 

6.18 


138.46 

138.81 

mn 

13262 

mss 

136 .33 


132.9a 

13238 

133.11 


13082 


128X8 - 
12041- . 

129,96 . 
UM7-. 
12757 r' 
128.40 


Gmammant 1 0 -ya ar | 


48S 


6.37 


061 


ttetfmtad par yWd. 

. Sou tea: Nomura Ra anarch institute. 


[US TREASURY YIELDS^ 

0 J —. TtomacMoUM I 

8*- 


7b- 


8*- 

-y - 

m* 

^<F6baB.wr 

e*- 


| a e 1 z a as 7 s an so I 

l Monlhe Ware J 


4B tbex securtttesboofng been soft ibis announcement qfieon os a matter of record onlf. 



European Economic Community 


U.S. $250,000,000 1 X A per cent Notes 1993 


S. G .Warburg Securities 


Banque Nationale de Paris 
County NatW est Capital Markets limited 
Credit Suisse First Boston limited 
Kredietbank International Group 
Morgan Stanley International 
Salomon Brothers International limited 
Banco de Vizcaya, S.A. 
Bankers Trust International limited 
Chase Investment Bank 
Citicorp Investment Bank limited 
Daiwa Europe limited 
Enskilria Securities 

Slm« H iwTi^a Pi wltlk h 1 Iniit^ 

IBJ International limited 


Bayerische Vereinsbank AktiengeseUschaft 
Credit Lyonnais 

Deutsche Bank Capital Markets Limited 
Morgan Guaranty Ltd 
Nomura International limited 
Union Bank of Switzerland (Securities) 

Umlrrrl 

Banco di Roma 

Banque Paribas Capital Markets Limited 
CXBC Capital Markets 
Cr6dit Commercial de France 
EBC Amr o Bank limited 
Goldman Sachs International Corp. 
Kleinwort Benson limited 


Samuel Montagu & Co. limited PrivatbankenA/'S 

Prudential-Bache Securities International Shearson Lehman Brothers International 


FT/AIBD INTERNATIONAL BOND SERVICE 



Soci6t6 Generate 

Westdeutsche Landesbank Girozentrale 


Swiss Bank Corporation International 

Limited 

Wood Gundy Inc. 


US DOLLAR 
STRAIGHTS 

ABN Bank 84 81 

Acton Lila 6 Can 7% 16 200 
AHFC O/S Rn 11* 94 100 

AIDC 11 89 7* 

Alcoa Australia 11 62... 88 

American Expe 12* 88 160 
Asian Dsv Bk 11V 93 100 

Australis 111, 90 .. 100 

Australis II 1 * 00 100 

Austria Zero 95 100 

Bank of Montrl IV* 87 100 
Bank of Tokyo 8*, 96... 100 
Bank of Tokyo 11 90... 128 
Bank of Tokyo 1 1 7 , 90 100 
Bank of Tokyo IVi 88 100 
Barclays Jersey W, 90 ZSO 
Barclays Jersey IQS 95 260 

Belgium 7* 91 25 0 

Belgium 7\ 91 300 

Beta wrest Prop 75 83— ISO 
BFCE 7* 83 ... — ... — . 100 
Bk Nous Scotia 13* 87 100 
BNP 8* 93 ......... — . 129 

BNP 13* 89 160 

BP Capital 9*93 180 

BP Capital 11* S2. 180 

Br Col Hydro 10* 88 — 200 
Br Col Hydro 11* 83 ... 200 
Campbell Soup 10* 95 100 
Canada 10* 88 BOO 

Canada 11* 90 ......... RM 

Canadn Imp Bk 19* 91 100 
Can Natnl Rail 14* 91 100 
Canadian Pacific 7* 96 100 
Canadian Pacific 10* 93 100 
Can Pacific Secs 15 89 76 

Canadian Wheat 11* 90 SO 

CCCE 7* 91 113 

Centnut S&L 0 ia._ 1 . 2 bn 
Chevron USA 12* 89.- 800 

Citicorp 11* 92 100 

Colgate-Palmolive 9* 98 100 
Com Bk Australia 10 93 100 
Com Bk Auavlla 12* 89 100 
Continental Grp 11* 93 75 

Crocker National 10* 88 76 

Dart Kraft A 10* 96 8W 100 
Danmark 0 86 266 

Danmark 7 88 — ..—...1.0b « 
Danmark 10* 80 .... 100 

Danmark 11* 92 100 

Danmark 13 82 XW — 100 

Danmark 13* 91 . 100 

Deutsche Bk Rn 13* 89 200 

OKB A ala 8* 91 WO 

Dutch St Minea 11* 91 160 
ECSC 7 88 “ 

ECSC 8* 96 
EDF 10* 96 A 
EEC 9* 80 . 

EJB 7* 39 
EIB 8*88 
EIB 8* 88 
EIB 8* 93 
BB 9* S3 .. 

EIB 10* 84 
EIB 11 SI 
EIB 11* 91 
Ekaportftnana 0 94 
Bsc do Fr 14* 88 XW 
Bi Lilly 10* 90 - 
Em arson Bee 9* 95 SW 
ENEL 10 86 „ 

Engelhard Corpn 11* 92 
Eurofires 9* 96 . 100 

Euroflnaa 12* 89 ......... 76 

Export Doval 9* SB ... 200 
Export Dev Cora VI 90 WO 
Export Dsvel 10* 88 ... V* 
Export Dove I If* 83—1® 
Export Doval 12 89 ... WO 
Farm Credit Corp 7* 93 100 

Finland 12* 94 .— 76 

Ford Motor 10* 93 — 160 
Fora marks 8* 91 ...... WO 

Fuff 6k & Tat 7* 91... W 
Fuji Inti 10* 90 ..... — WO 

Gsz da Franca 12* 93 176 
Gen Elec Crad 9* 91 ... TOO 
Gen Bee Crad 10* 90... 200 
Gen Elac Crad 12 94 ... 200 

Getty Oil 1* 89 V® 

GMAC 10 88 .... — .... 200 

GMAC 10 92 260 

Gram Finance 13* 89... WO 
Gulf Canada 14* 92 ... 100 

GZB 14 91 100 

Hiram Walker 16 80 ... 76 

Holl Air Bn 12* 91 ... 100 

IBM 9* 88 200 

IBM Credit 10* 89 ...... 300 

IBM Wrld Trade 12* 82 200 
1C Industries 12 90 — 76 

Inca 9 92 .... WO 

Ind Bk Japan 10k 92 ... 700 
Ind Bk Japan Rn 8 S3 160 
Int-Amer Dev 12* 91 ~. 1*0 
Int Paper 12 91 ......... 76 

IPF 12* 92 100 

Italy a* 91 . — 220 

Italy S* 96 ISO 

ITT Credit Corp 10* 90 75 

Japan Air Lines 8* 96 160 
Japan Dev Bk 10 92 ... 100 
Kellogg Co 10* 90 — 100 
Liberty Mtuel 8* 96 ... 1» 
Lockheed Corpn 7* 89 1G0 
Long Term Crad TO* 90 WO 
Long Term Cred 11 90 WO 
Long Term Cred 11* 89 
Manitoba 7* 96 ..... — 

Manitoba 8* BI ......... 

Manitoba 13* 89 ...... 

Marks A Spencer 8* 98 

Marubeni 11* 91 

Mercedes Credit 7* 93 
Mercedes Credit 7* 93 
Merrill Lynch 8 S3 ...... 

Merrill Lynch 9 88 IMI 
Mer Lynch O/S 10* 90 
Mitsubishi Co 10* 32... 
Mitsubishi Est 10* 92 
Mltsbshi Rn HK 11* 90 
Mlubahl Rn HK 12* 91 
Mitsui Tat Rn 12 81 
Mobil Corp 10* SO ... 

Mo roan Giy Tat 12* 89 
Morgan J P 11* 92 ... 
Motorola 12 94 ... — • 

Mount lea Rn 13* 87 
Nat West Rn 11* 92 ... 

Ned Caaunle 11* 90 — 

New Zealand 7* 89 
Naw Zealand 7* 91 — 

Naw Zealand 7* 81 ... 

New Zealand 8 93 «... 

Naw Zealand 8* 93 ... 

Now Zealand 10* 9S — 

Nippon Cred Bk 13* 89 
Nippon Tel A Tel 7* 94 
Nlaho I aril 10* 92 
Nova Scotia 11* 91 — 

NSW Treasury 11* 90 160 
Olympia & York 8* 96 436 
Ontario Hydro 10 * 90 260 
Hydro 11* 89 200 
Hydro 11* 94 200 
Hydro 11* 90 
Hydro 13* 91 
Hydro 14* 89 


Bid CbB-Qn 

Issued price week Yield 


7.77 


7X1 


7.02 


ISO 

96* 

-0* 

8.11 

12 s 

104* 

-0* 

730 

ion 

114* 

-0* 

739 

160 

W1* 

-0* 

8.04 

100 

111* 

-0* 

832 

wo 

88* 

0 

738 

100 

101* 

-0* 

7.27 

200 

TOO 1 , 

- 0 * 

734 

300 

100* 

-0* 

7.13 

200 

TOS 

-0* 

7.60 

wo 

109* 

0 

83Z 

60 

108* 

-0* 

8.44 

WO 

TO* 

0 

73* 

wo 

113* 

-2* 

830 

too 

'IS* 

- 0 * 

8.11 

200 

106* 

+0* 

7.72 

160 

111* 

0 

7.13 

TOO 

MB* 

0 

0.11 

75 

117* 

- 0 * 


WO 

TO1* 

-0* 

ElTJ 

160 

117* 

0 

738 

75 

111 

+0* 

739 

300 

WO* 

-0* 

7.14 

300 

TO* 

“0* 

7JW 

260 

TOO 

-0* 

7.81 

WO 

TOO* 

-0* 

735 

160 

W2 

-0* 

733 

200 

110* 

0 

833 

100 

113* 

-0* 

7.17 

160 

90* 

-0* 

7.61 

WO 

110 

-0* 

833 

WO 

104* 

+0* 

WTO 


Ontario 
Ontario 

Ontario . . 

Ontario Hydro 13* 91. WO 
Ontario Hydro 14* 89 160 
Ontario Hydra 15 SO. 189 
Pacific Gaa & B 12 00 76 
Penney J C 11* 90 ... WO 
Penney J C 12* 91 ... 100 
Pepalco Capita: 6* 91 15° 


111* -0* 
98* -0* 
706* -0* 
110* -0* 
119* -0* 
118* -0* 
120 * ~ 0 * 
114* -0* 
131* +0* 
118* -0* 
103 O 
1 «* + 0 * 
103* +0* 


7.42 

8*41 

7.12 

7-00 

7.79 

730 

730 

7.W 

7.66 

938 

10.74 

9J6 

7JS8 


Petre-Canada 7* 96 _ 
PMOp Morris B* BB _ 
Post Ocb Kred 13* 87 
PostpankkT 11* 90 M 
Proctor & Gam 10 99 
Pro Rity Sacs 0 99 ... 
i Tartu Airways 9* 99 
Quebec Hydro 10 99 _ 
Quebec Pmv 13 90 _ 
Queens Id Gvt 11* 89 
Ralston Purina 11* 86 
Reynolds R. J. 10* 83 
Rockwell Int B* 90 M 
Sa ska tc he w a n 7 81 _ 

Saskatchewan 8* 01— 
Saskatchewan 11* 89 
Saakatcbasran 16 92 _ 

SAS 10* 96 

Scot Inti Flo 10* BQ_ 
Soars O/S Ho 0 98 ... 
Sean 055 Rn 11* 93 
Seen Roebuck 10* 91 

Sac Pacific 10* 88 

Shall (Canada) 14*92 

Shall Oil 8* 90 — . 

Standard 0 ft 70* 89 » 
St Bk Sth Auat 9* 83 
State Bee Viet 10 82 
8th Aoa Gov Re 8* 83 
Sumitomo Fin 11* 92 

Sweden 8* 94 

Sweden 10* 92 ........ 

Swedish Exp Crd 9* S3 
Swedish Export 11* 89 
Talyo Kobe 11* 90 _ 
Txlyo Kobe 12 90 
Tenooco Corp 11* 89 
Texaco Capftsf 13* 99 
Taxis rnat 11* 91 _ 
Toksi Asia 11* 96 M 
Tokyo Metro S* 96 _ 

UBS 12* 91 

UnBevsr Cap Co 9* 82 
Viet PBC Autfa 8* 98 
WtHnor^ambert 8* 96 

Whlla Fatgo 13* 91. 

WeyirtMiiser 11* 90 

World Bonk 7 92 

World Bank 11* 90 _ 
World Bank 11* 88 w 
World Bank IT* BO _ 

FLOATING RATE 
NOTES 

Alaska Housing 1/10 01 
Alberts Province * 83 
Al fiance A Laics 008 as 

Allied Irish * 95 T 

Anrer SOL- 0.1B 99 
Banco dl Stems £ 92 
Bank of Boston * 2000 
Bk of hioatraol *96 _ 
Banker! Tr NY * 94 
Ban Indoxa * 91 XW t 
Bardaya 0/5 Inv * 04 
BBL Ind 83 - . . __ 

Belgium * 94 £ . 
Belgium 97 
Belgium 00 
Belgium * w 

Belgium Q6 

Bilbao Ind 0.038 01 M 
BNP 05 
CCCE * 9B 

CC P 97 

CsntraJ ind i/to oo 
Contrast ai6 96 

CEFME * 98 l 

Chase Manhattan * 83 
Chase Manhattan * 09 
CfiamicaJ NY *» 97 ... 


200 

9** 

- 0 * 

200 

109* 

0 

60 

101 * 

- 0 * 

75 

TOB 

0 

WO 

110* 

- 0 * 

366 

36* 

- 0 * 

97 

W3 

- 0 * 

75 

TOE* 

0 

150 

■ns* 

- 0 * 

TOO 

109* 

- 0 * 

TOO 

ns* 

+ 0 * 

100 

111 

- 0 * 

200 

107 * 

- 0 * 

TZS 

TOO* 

0 

160 

TOS* 

-«* 

WO 

1»* 

0 

WO 

WO* 

+0* 

160 

110* 

—0* 

60 

TOT* 

-0* 

600 

39 

-0* 

160 

119* 

-0* 

TOO 

104* 

0 

100 

TOS* 

-0* 

TZS 

113* 

0 

250 

196* 

0 

no 

we* 

+0* 

TOO 

106 

-0* 

TOO 

TOO* 

-«* 

TOO 

103* 

-0* 

160 

«■* 

-0* 

160 

TOZ* 

0 

250 

112* 

-0* 

TOO 

MS* 

—0* 

WO 

107* 

-0* 

wo 

1«* 

-0* 

WO 

1W* 

+0* 

150 

106* 

40* 

200 

WB* 

+0* 

WO 

107* 

0 

WO 

119* 

-«* 

2DO 

TOT* 

-0* 

100 

107* 

+0* 

160 

110* 

- 0 * 

TOO 

101* 

- 0 * 

TOO 

101* 

+ 0 * 

WO 

118* 

40 * 

60 

TOZ* 

0 

300 

98* 

0 

200 

113 

- 0 * 

200 

W7* 

- 0 * 

WO 

iw* 

-0* 


BM Ciig.on 


7J94 

7.62 

8.13 

BJBZ 

8.14 
>32 
787 

721 
8X3 
739 
72) 
7.41 
7j44 

722 

731 
8.40 

732 
835 
7.70 
MB 
7.19 

1031 
730 
936 
732 
734 

736 
7J 
7.65 
7.48 
8.U 
6J 

737 
734 
833 

11.75 

931 

8.16 

839 

1032 
7X0 
8. T9 
74 
832 

1037 

7.17 


Issued price week 



Creditanstalt *» 90 
Eldorado Muko 89 

ENEL * 83 £ 

ENEL * 00 ZZ 

Ferro Dal Star 1/TO 85 
Ferro Del Sort 97 ...... 

Flntpap * 95 .... 

Rrat Bk System * 87 
FI rat Chicago ** 98 «_ 
Ford Motor Cr * 81 

Gen Fiance * 94 
Grindlsya * 94 
GW O/S Rn * 94 
Halifax B 8 2/2S 96 (A) 
Halifax BS 2/25 96 ( 8 ) 
Hesalaclm Landoaby SB 
Iceland * 00 
Ireland * 96 £ 

Ireland * 97 
leveimar * 90 

Italy *» 06 ... ^ 

KB Iflma ai5 11 
Korea Exehang Bk * 00 
Lincoln S & L * 99 

Llnlln Cpn * 01 

Malaya la * 92 

Malaya la *, 06 

Marine Midland * 09 
Midland Inti * 92 ...... 

Milk Markets *I3„ 

Mitsui Rn * 88 ... 

Morgan J P * 97 

Mtg Intermed * 10 £ 
Nat Bank Canada * 9f 
Nat Bank Canada 96 _ 
Nat Bk Canada * 98 ^ 
Nat Bk Detroit * 98 ... 

Nat West * 05 

Nat West Rn * 92 ... 
Nationwide 1/10 98 ... 

Natl Com * 94 “ 

NBD Bancorp * 2005 
Nartheeat Sav 1/10 9B 

ONGC *, 98 

Otter Lend by * 98 M 

PNC Rn *, 97 

Qua tree Hydro 2002 .... 
Q uoanalnd Coal 1/20 98 
Regia Olympiquea 94 ... 
Santa Barbara S&L * 96 
Scandinavia Fin * 90 
Soot Inti Rn * 92 
Sec Paclflo * 82 

SNCB * 91 Z 

Sweden * 2006 
Talyo * 04 ..... 

Takugin * 97 .. 
Thailand * 06 


100 


200 

100 

160 

125 

100 

TOO 

200 


260 

20 

-no 

100 

75 

IDO 

TOO 

WO 

60 

TOO 

160 

60 

260 


Varalnwast O/S Rn 91 
Walla Fatgo 0326 92 
Wells Fargo *, 96 Z. 

Wells Fargo * 97 ’ 

Walla Fargo * 99 ... 200 

Walla Fargo * 00 ..Zl S3 
Waatpae Banking * 97 150 98* 

Woodaltta Rn f?eb) 97 S3 « 
Woolwich Eoulr * 95 MO % 


World Bank 038 B4 ... 
Zantral Und Kom * 81 


O 6 n* 
O P* 
0 11 * 

0 7 

«> O •* 

98* 0 B* 

98 + 0 * 0 b» 

-0* ^ 

TOO* +0* 6 * 
88 “ 0 * 11 *» 
»* -O* 6 * 

+V « »* 

89* 0 6*4 

£• J 6* 

96 —0* 6 ** 

•£ ® 

S» ° 6* 

98* ° 6* 

0 8* 
100 0 11* 

WO +0* 6 *. 

BB* 0 4V 
TOO o 8 * 

»£.-«* R 

BB* 0 6 ** 

» “0* ^ 

0 >* 

0 ev 
w* + 0 * «*" 
2* 0 6** 

98* +0* 60, 
98* +0* 6 * 
97* +0* 6 * 
+ 0 * 6 *** 
0 6 * 

_ -o* 10* 

98* 0 


% 


B* 

WO +0* F* 
Od Chg. on 

n . _ Issued price -weak Pram. 

AmrloanjBnkro 5* 01 70 102 * - 0 * 41 . n 


SET 6* 01 £ 
Canon 3 00 


CItiran Witch 2 <30 Z 

STRAIGHT BONDS; Yield to redemption of tho mhJ-prlcg. Amount issued la 
expressed In millions of currency units except for yen bonds, where it la in 
Milton a. 

FLOATING RATE NOTES: U8_donare onleaa Indicated. Margin above alx-month 
o flared rata ft dareo-month; S above mean rats) for US dollars. C^cpa— currant 
coupon. 

CONVERTIBLE BONDS: US doHam unless Indicated. Pram- percentage premtam 


100 

CO 


+W, — TOCJjO 
W* -Wi UK 

w. -o* 437 


Eastman Kodak 8* 01-. 

Ehtera UK 6* 98 

Fanuo 3* 88 
Fulltau 3 99 . — 
Qlbrattar Savings 7* 06 


300 

176 

80 

TOO 

TOO 

60 

60 

100 

TOO 

TO 


1TO* +2V 1 UK-. 
114* -4* -13L14 
191* -24* -137- 
TIT* -1* 4-19 > 

TOO* +<J* .1838-.. 
TO 

123* -O* 9638 
98*. 3 7939 

129* .+V . 038" 
138* +W* .1J1- 
1«* -O* -T.TO 
-29* 

95* 0 9E39 

166* +TO 
10** +1* _33.11 
122* -a* 

98* + 0 * r 






fTT 4* 87 

Klnder-Care lot 6* 98 
LorimaP-Taleples 6 01—;. 

Newmont Minina 7 01_ 

Nippon Seiko 3* 99 ^ 

Ron nay J C Int 4* 87 
RockefeDor Centra 0 00 - 962 
Southwest Air 6* 9B... 36 

Swiss Bank Corp 6* 60 120 
Texaco Capital 11* 94 60S 
Toshiba Ceramics 3 00 . 80 
Xarax Coipn .6 88 78 - - 

Bid Ohg. cm *jl 

YEN STRAIGHTS . Issued priat ereafc - 

Allied Signal A 93 - 30 TOT* -0* - • 

30 106* —0* 832. 

40 107 +0* 4L08, 

20 NO* -O* 4JM 

TO 112* +0* .434-- 

10 WB* -O* 4A4 . 

SO 166* +0* 8.33 .... 

16 707* — 0* 634 -r. : 

19 106* -0* 839 h/. 

bo no* -o* j.,:-.- 

26 108 -0* 434 . 

16 106* -0* 831- 

125 701* -0* 8.18 


Avon Products Bk 91. 
Barclays O/S 6 96 , 
BFCE 6* 96 


Canadian Pacific A SB 
Denmark 6* 92 
Dow Cftemioal 7 04 ~ 

Euroflma 8* 96 — 

Eurafhna 6* 92 — 

FNMA 0* 82 

GMAC B* 90 

Int-Anw Dev 7* 93 M 
Intel 6* 94 ^ — 


nr s* 92 — 

McDonald Corp 6* 92 
Now Zealand 7* 90 _ 
flaw Zealand 7* 89 _ 
Permey j CAN mm 
P hIHp Monte 6* 91 — 
Sallls Mas 8* 92 — - 

TRW 7 94 

World Book 7* 93 — 
World Bank 8 83 — . 

WXFB STRAIGHTS 
Aslan Dov Bonk 6* 87 
EIB 10* 94 
Egrofima 10 94 . 


20 


15 

16 
» 
20 
28 
16 
30 
30 


- 0 * 

- 0 * 

-o* 

- 0 * 

- 0 * 


109* 

108* 

HO* 

108 
TOB* 

107 

TOO* -0* 
106* +0* 
117* 0 

118* -IPs 
Md ««. an 
leaund prioe week 

— 99* 0 

Ibn 107* 0 

800 106 O 

Eur Coal & Stl 10* 84 Ibn M3* 0 

Renault Ace 7* 88 600 TOO • 

GUILDER Bid Cbg. on 

STRAIGHTS tamnod prtea enrak 


ABN 7* 89 IBB 

ABN 8 89 — 200 

Amro Bank 7* 88 m~. 1W 
Amro Bank 8 89-.."--“ 200 
Beatrice Foods 8V89U. TOO 
Bk Maos « Hops 3* 89. TOO 

CC Rabo R 89 TOO 

Denmark 8* 91 WO 

Int sand Bjk S* 89-. Wo 
Now Zealand 8* 99 — TOO 
CANADIAN DOLLAR 
STRAIGHTS 
AIDC TO 91 


103* 

103 

102 * 

-MS* 

103* 

TOO* 

.108* 

107* 

103* 

W4 


0 

-0* 

O 

- 0 * 

O 

0 

0 

0 

-0* 

- 0 * 


4*43,. 
' 4j43 
-438 
4-ts 
438 


8.18 

432 


YWd 

932 

KOI 

838 

9.79 

7.T0 

Yield 

8.12 

8.17 

6.19 

8.19 
938 
6.12 
8.19 
83Q 
831 


Auat Raaourcee 11* te 
Bank of Tokyo 10* 92 
Bqo rindosuez 14 91— 

Br Col Munta 12* 81. ~ 

Br Co) Manic 13* 91— 

Br Col Tele 12* 88 — 

Farm Crad Corp 12* 90 
Kltag Satada Can 9 92 
Laval City 10* 96 ...... « 

Montreal City 12* 91 — 

New Bnmawk* 1295— 

Nova Scotia 11* 95 — 

Royal Troatoo 10* 90— 


Bid Ckg-te 

Itemed prim week TOM 
TOO TOB* +0* 830 

50 109* +0* 936 

75 TO2 0 W33 

75 W* -0* W36 

TOO 1«* +«* •» 

TOO 117* +F, 

70 TO6A -W. 11^ 

78 110* +0* 939 

EO 103* +1* 

107* +0». »31 

80 in* +1* 930 

76 1TO* +«t J-TO 
TOO 113* +A 9-16 

JB W?+tt AM 


BM Cbg.on 


ECU STRAIGHTS 
ABN S* 


YWd 


Aegon NV A S — — 
All Nippon Air 9 95- 
Au avails k NZ 10* 91 
Austria 10* 93 — 

BFCE 8* 93 

BFCE 9* 32 — 

BNP 8* 66 

Cal ana Nat Tele 8* 92 
Chrysler Rn 9 82 —— 
Colgate-Palmolive 8 91 
Cred Lyonnais® 6* 92 
Crad National 10* 84— 
Crad National 11* 91— 
Creditanstalt 8* 94 — 
Denmark 7* 90—. — . 

Bun Inti 10* 99 

EEC 11* 91 — 

EIB 9* 96 

BB 10* 94 — 

BB 11* 82 — 

Genflnanoe 11 


TOO 

101 

130 

50 

TOO 

150 

WO 

76 

75 

75 

75 

175 

60 

60 

67 

2E0 

65 

50 

200 

130 

75 

70 

80 

60 

60 

600 

BOO 

200 

75 

TOO 

85 

57 

60 

too 


90 

Girt) Vienna 10* 93 — 

GTE Finance 10* 92 ... 

Ireland 10* 98 

Italian Govt 10* 92 w 
Italian Trass 11* 90 — 

Italy 9* 89 — . 

Kredietbank L 9* 92 ... 

Morgan Gty Tat 8* 90 
Royal Bk Can 10.5 89 
Swedish Export 11 89— 

Wait LB 10* 91 — . 

World Bank TO* 88 — 

AUSTRALIAN DOLLAR 
STRAIGHTS laauac 

BMW Rn A 13* 96 SW 76 
Not Aost Bk 12* 99 — 60 

SBC Australia 12* 90... 60 

Weatpac Bkng 12* 90 50 84 +0* TOuW 

STERLING Bid Chg. m 

STRAIGHTS Issued price wreak Ylaltf 


104* 

0 

830. 

97 

40* 

7.71 

TOT* 

40* 

7.89 

106 

40* 

930 .- 

109* 

-0* 

833 ; 

TOS* 

40* 

738 

no* 

a 

JB: 

105* 

- 0 * 

739 

110 

0 

732 

102* 

0 

•36; 

102* 

0 

732.-. 

98* 

40* 

7J& . i 

108* 

40* 

830 « - 

107* 

- 0 * 

•j* . ; 

TO** 

0 

7.76 

BB* 

40* 

78* 

TOS 

0 

934 

TOB 

40* 

837 

TOB* 

0 

837 . ■; 

113* 

40* 

,7J» r 

TOT* 

—0* 

9 JO 

TOB* 

0. 

839 

WB* 

0 

8.79 .. 

W7 

0 

*J» -. 

TOO* 

0 

832 . 

109* 

“0* 

839 - 

108* 

+0* 

•37 J 

104* 

-0* 

738 

TOO* 

0 

831 • 

W8* 

- 0 * 

739 • 

10Z* 

0 

938-’.. 

104 

0 

•37. vT 

W7 

0 - 

B.n- -• 

102* 

0 

■ i.d» -v 

BM Cbo.cn 


price 

■reek 

YleM • 

«Z* 

40* 

1337 

85* 

40* 

W3». 


British Oxygen 11* 81 
Danmark 10* 89 — . 

EC 11* 94 

Emfrart 11 92 

Halifax BS S* 93 

Ind Bk Japan 11* 95 — 

■nt Stand Hoc ii* B9 
Investors Indue ID* 93 
Ireland 11* 94 
Kredietbank 10 * 02 — 

Lend Securities g* 07... 
iS** 1 ; Pwminent 9* 93 

ssiusnssb; 

World Bank 11 * 8a 
Tamalcfai Sea 3* 91 XW 

EQUITY ExMrv 

WARRANTS 

Casio Computer — 6/3/88 

Dwe Mining 20/7/90 

FuJIta Corps 9/B/91 

*1/1/91 


SO 

75 

60 

35 

100 

30 

60 

30 

40 

BO 

TOO 

50 

60 

TOO 

100 

20 


Fujitsu 
Gangs 

Mlnebse — 
R*nown Inc 
Sehto Trans 
Sonolka Mfg 

Sony Corp . 

Sumitomo Co rp — 
Toray Ind 


m 

BOND 
WAHRAMTB 
Asgoo ins 11* 91 
Den Kraft F 10* 90 
D Norsks Cr 8 * 96 
aanwtfinas 13* 89 „ 0/ 

Cril 12 94 1 fi/ 11 /g 7 
tad Bk Jpn 12* 91 6/10/no 

MhaublahJ F 12 * 91 8/11/S 
JP Morgan 11 * » 16 / 8 /n 
Nordic Iv Bk 7* 98 30/lO/BT 

J r ^ ^ 92 20/2/32 

JJ?'* *£ao A 12 * 91 Z7/T2/W 

Weyarhar C 11 * » 15/IT^S 


23/11/90 

22/6/91 

2^1/89 

HAW 

TO/S/91 
28/4/00 
1/BI 

fi/sSt 

sr 

TO/2/88 

7/7/96 

,8/8/89 

16/9/87 


107 O 
101* -0* 931 

TO8* - 1 * 9.67 ' 

104* -0* 9JB 
99* -O* 9.68 

TO3*. — o* 10 or 
W2* +0* 9JB 

ns 5 . + 0 * mao' 
low, +o* mao- 

103 -1 • 10.08 

91* -1* 7038 
88 —1* 9J0 

MS* -0* 9.99 

W2* -0* 9L90 

701* -O* 9.73 

77* +0* 9JM 

_MdChg.on ' 

Pri^ week Prom. 
36* - 5 * 1736 

77* +1* 8724 

2L +4* 30J8I- 
-1* .46.28 

87* “1* 4.W 

17* +0* 13.76 

-0* 21.12 

». -1* -2.72 

1«* 0 3030 

+2» 69.75 
-2* 1031 
— - +** W J1 
w* -O* 6836 
Kd Cbg.on 


7J8 



742 

8-77 


738 


16/11/87 

WARRANTS; Equhy warrant pram -exa rote* - 

Bond warrant ex yld-ewreia* ^ „ c U rre^ r ^ n J^^ urrKrt 

_ . Ctoelng prices on March 29, 

QTho Financial Tlmea LuL, 1987. Reomo.^t-. k, JT 


CONVERTIBLE BONDS: US dofiara unless Indicated. Pram -percentage prentam T " T ' "•Adduction In Mnu ^ 

of the currant effective price of buying shares ids tbe bond over tho moat * ora ‘ ^ tWUJmU without written consent. Date iopoiimi pBIt 1,1 Bny 

recant share price. intemacfeoal Bond Deafen. pplted V Awocfttfoo of; 





Financi al Times Monday March 30 1987 



K «l|d ITmrf 



■S ROYAL 
■ ■TRUST 

. 

Royal Trustee Lii 

(Incorporated with fimitedfiabftityin Canada) 

mited 

Issue of 

A$50,000,000 


14% per cent Debentures due 1992 

Issue Price 101% per cent 


County NatWest Capital Markets Limited 


CISC limited 

Dominion Securities Inc. 

Algemene Bank Nederland N.V. 

Banque Bruxelles Lambert SA 

Commerzbank Girozentrale und Bank derdstenekhisdien 

AhtingescBscbaft spsrfc— « 

The NSdoo Securities Co„ (Europe) Ltd. Nomura International limited 

J. Henry Schroder Wa&* & Co. limited 

Westpac Banking Corponation 

. 

HandefaRank N.W. (Overseas) Ltd. 


BancadelGottardo Compagnie de Banque et dTnvestjssements, CBI 

March 1987 



Allthe Noras fr«yta& been sold, dHt s anooaci Bn i WK appears a* a msttarof record only. 




This snuounceaem appears m * matter of record only. 


New Issue 


March 1987 



AB Svensk Exportkredit 

(Swedish Export Credit Corporation) 

(Incorporated in the Kingdom of Sweden with limited liability) 


A£50,000,000 

14% per cent. Notes due 1990 


County NatWest Capital Markets limited 


Bank Brussel Lambert N.V. 

Banque Nationale de Paris 

Credit Commercial de France 

Orion Royal Bank Limited 

Saitama International (Hong Kong) Limited 


Bankers Trust International Limited 
Berliner Handels- und Frankfurter Bank 

Gfitabanken 

Prudential-Bache Securities International 

SwedBank 


This armoaDcenrent appears u a matter of record only. 


New Issue 


Marsh 1987 


New Issue 


March 1987 



WOOLWICH 

EQUITABLE BUILDING SOCIETY 

(Incorporated In Batfand under the Bufldloft So c i et l ea Act 1986) 



U.S. #1 50,000,000 
8 per cent Notes due 1994 


ill 


Gaisse Nationale des 
Telecommunications 

£70,000,000 

10 per cent Bonds due 1997 

IhKxnditionallyg uar anteedby 

The Republic of France 


County NatWest Capital Markets limited Nomura International limited 

Banque Bruxelles Lambert SA. Girozentrale und Bank derdstenekhisdien 

SpaAassenAktaengeselbchaft 

ITie Nikko Securities Co., (Europe) Ltd. NM. Rothschild & Sons Limited 

Soctetg G€n€nile 


County NatWest Capital Markets Limited 

Algemene Bank Nederland N.V. 

Banque Bruxelles Lambert SA 
Baring Mothers & Co., Limited 
Credit Lyonnais 

Deutsche Bank Capital Markets Limited 
Klein wort Benson limited 


Goldman Sachs International Corp. 
Bank of Tokyo International limited 

Banque Nationale de Paris 
Credit Commercial de France 
Credit Suisse First Boston limited 
Fuji International Finance limited 
Mitsubishi Trust International Limited 
Nomura International limited 


Samuel Montagu & Co. Limited Nomura International limited 

Soti£t£ Generate Swiss Bank Coxporation International Limited 

Union Bank of Switzerland (Securities) limited 8. G. VVkrburg Securities 

Westdeutsche Landesbank Girozentrale 


County NatWest 

AlkMV^hiwteiitetBaiikGm 












Financial limes Monday Maim 


INTERNATIONAL CAPITAL MARKETS and COMPANIES 


Bull plans FFr 800m bond issue 


BY PAUL BETTS IN PARS 

BULL, the nationalised Fr ench 
com puter group, is planning to 
launch a FFr 800m (5133) bond is- 
sofi with equity warrants to help fi- 
nance its international develop- 
ment strategy, including its recent- 
ly c onstitute d joint venture with 
Honeywell of the US and NEC of 
Japan. 

The equity warr ants will inject 
a d di tio nal capital of about FFr lbn 
if they are all convert e d during the 
mnrt two years, Mr fYanoois io- 
rentz, Buff s managing director, 
said. 

He digrfngprf that Bull also 


Singapore 
b anks show 
recovery 

By Steven Butler in Singapore 

PROFITS RECOVERED mod- 
estly last year at two of Singa- 
pore's leading bank groups. 
Overseas Chinese Banking Cor- 
poration (OCBC) and United 
Overseas Bank (UOB). 

Attributable profits at the 
UOB group increased by 7.1 per 
cent to S$106m (US$49-6m). 
Profits at the bank itself, how- 
ever, grew by just 1.6 per cent 
to S$99m, indicating that bank- 
ing profits are still being affec- 
ted strongly by. the continuing 
recession in the property mar- 
ket The results were also 
affected by lower interest rates 
and narrowed margins. 

Results were broadly similar 
at the OCBC group, with earn- 
ings rising by 3.8 per cent to 
S3 2 04 An. However, the increase 
was accounted for entirely by 
associated companies, while 
earnings at the bank itself de- 
clined from S$85.?in to S$77.9m. 

The results complete report- i 
ing by Singapore’s “big four” 
banks. DBS Bank put in the 
smartest performance with a 
44-2 per cent jump in attribut- 
able profits, while earnings at 
the Overseas Union Bank were 
sharply lower, mainly because 
of losses due to fraud at its 
Bong Kong main branch. 


plawnud to have shareholders sub- 
scribes to a new capital increase 
this year which would raise a far* 
ther FFr 1 billion for the company. 

These capital operations coincide 
with the completion of the agree- 
ment between Bull, Honeywell and 
NEC to form a jointly held company 
called Honeywell Bull incorporat- 
ing the assets of Honeywell's infor- 
mation systems division. 

Buffs initial investment in the 
S657m venture will total S131m. The 
French computer group will initial- 
ly own 42J> per cent of the company 
with Honeywell also bedding a 42J> 


per cent share and NEC a 15 per 
cent stake. 

However, Bull will acquire an ad- 
ditional stake from Honeywell in 
the new company by the end of next 
year which will increase its stake to 

65.1 per cent Honeywell will drop 
bade to 19.9 per cent and NEC will 
maintain 15 per omit 

Thig additional stake is expected 
to cost Bull between S85m and $7Qm 
b ring in g the total cost of Buffs in- 
vestment to around S20Qm, Mr Lo- 
rentz said. 

Bull, which signed the definitive 
agreement for the creation of the 


McLean to sell most of 
remaining shipping assets 


BY OUR NEW YORK STAFF 

McLEAN INDUSTRIES, foe 
financially troubled owner of 
one of foe biggest American 
flag shipping fleets, which is 
controlled by the 73-year-old Mr 
Malcolm McLean, the pioneer 
of modern-day container ship- 
ping, has agreed in principle to 
dispose of substantially all of 
its remaining shipping assets. 

US t.inPR. McLean's main sub- 
sidiary which filed for bank- 
ruptcy late last year, has agreed 
to transfer its South American 
vessels to American Transport 
Lines, a unit of Crowley Mari- 
time, and will sell its Brazilian 


and Argentinian subsidiaries to 
American Transport. 

US Lines has also signed a 
letter of intent with Sea-Land 
Corporation, its arch-rival which 
was acquired by CSX Corpora- 
tion last year, for the transfer 
of six vessels, certain port facili- 
ties and various other equip- 
ment. Sea-Land will pay 5125m 
upon delivery of ail of the assets 
free and clear of liens. 

The future of McLean's 12 
Korean-built giant container- 
ships, which precipitated Mc- 
Lean’s financial crisis, has still 
to be resolved. 


Fletcher bid refused clearance 

BY DAI HAYWARD IN WEUiNGTON 


THE New Zealand Commerce 
Commission has initially re- 
fused clearance for NZ5L5bn 
(US$848m) contested takeover 
by Fletcher GxaHenge of New 
Zealand Forest Products a rival 
agri-industrial group. 

In an tutwr iwi report, the cun- 
mission says Fletcher had failed 
to prove what it claimed would 
be public benefits from a take- 
over. 

Fletcher would obtain a more 
dominant position in some areas 


of the market and any public 
benefits would have to be M very 
significant.” 

The commission will give its 
final decision on April 23 and 
companies involved have until 
April 6 to put forward further 
arguments countering any 
points made in the interi m re- 
port. 

NZFP has opposed the Ud, 
launched late last year and 
stince stalled. 


earnings 



CHECK EVERT DAY « IK FT 


new company cm Friday, said Mr 
Jacques Stern, Buffs chief execu- 
tive «tiH chairman, had been named 
chairman of the venture. 

Mr Jerome Meyer, the former ex- 
ecutive vice president of Honeywell 
Information Systems, has been 
named chief executive officer of the 
new company, which will have an- 
nua] sales of Sliftm and employ 
20,500. 

Mr Lorentz said the new venture 
would enhance Buffs ability to 
penetrate international markets. 
Bull recently reported consolidated 
net ear nings of FFr 271m on sales 
of FFr 17fibn last year. 


Bredero faces 
third inquiry 
by bourse 

By Laura Raun In A ms ter da m 

BREDERO, tire troubled Dutch con- 
struction company, is at foe centre 
of an insiderteading inquiry by the 
Amsterdam Stock Exchange for the 
third time in six 

The bourse is investigating 
whether faride information was 
in advance of Bredero's 
planned release of its 1986 results 
last Wednesday. Bredero, which 
previously said it expected to lose 
FI 60m (S29Jm) in 1968, has now de- 
layed the results until mid-April 
pending an emergency review of its 

finances with creditor banks. 

The Stock Exchange Commis- 
I sioner for Listings cancelled all 
, trades in Bredero made last Tues- 
day fkmiing g have remained 
! suspended. In September and No- 
| vember last year suspicions of in- 
sider-trading ahmoft s atoo prompted 
: bourse inquiries but neither found 
evidence of wrongdoing. 

Bredero encountered difficulties 
last year when it became apparent 
that Breevast, its 38.7 per cent 
owned property subsidiary, was 
sinking into the red. Since October 
Breevast has had temporary court 
protection from its creditors and as 
of January its debts trmrfdPif as- 
sets by FI 9L3m, according to a re- 
ceiver's report. 

In November Bredero announced i 
drastic measures to try to return to 
the black. 


NEW INTERNATIONAL BOND ISSUES 


Ar.8t Coopoa 
yura 


OS.OOUABS 

HoBwShypfcBtt 

LSlngjcCwp-fT 

Cndt Kanoari t 

toppdOwM 
feancnCnSt 
Bapco d Sritei 
fetes: Bee. Express U 

ttirofe fits* Mate? 
Bmefa Cop- 


lbn, were rising faster than expect- 
ed, ia part due to production iddays. 
Financial from cu stom e r s 

who are getting their airplanes late 
also hurt profits although foe size 
erf foe claims was not disclosed. 

F-u y nfri gg per share dumped 44 
per cent to FI 3JJ6 from FI 8.55. 

As a result Fokker cut its 1986 
dividend to FI L75 a share from F! 
2.75 in 1985. 

The first 50-seat, turboprop Fok- 
ker 50 was to have been delivered to 
Ansett of Australia in September 
1986 but now will be delivered in 
the middle of tins year. The first 
100-seot, fanjet Fokker 100 will be 
handed over to Swissair at the end 
of this year instead <rf next month. 

Fokker unveiled the short- to me- 
dium-haul aircraft in the of 

1983 great confidence that 
they could be rn«rio for relatively 
i less th* n competing aircraft be- 
cause they were designed as moder- 
nised versions of existing craft. The 
Fokker 50 is a successor foe F-27 
i and the Fokker 100 is is a successor 
to the F-28. 

The Amsterdam-based company 
recently was granted easier repay- 
ment terms by the Dutch govern- 
ment on loans for the Fokker 100, 
for which Fokker has a record 2bn 
order from GPA, foe leasing compa- 
ny. Fokker also has lined up FI 
500m in fresh bank credit to help 
with total debt font soared 51 per 
cent to FI 413m last year. 

Turnover rose a modest 5 per 
cent to FI L40bn in 1986 from FI 
1.33bn the year before. 


QUHSMEfiSUMS 
Corea. BA. da Moatm!? 
Ifartrttl Trustee 1 


A0STRA19W B0uA8S 
TasBBBhn Pnbfic Ra. j 

IBSdhawg-fintowj 
BeB&mpS 
fade hv. Bank! 
Crifoareis A'twSi t 
UB RMntexM’hkl 
Writ Borert 
IBM Aastala Cr. t 


188 

2882 

122 

125 

28QZ 

■ 15 

IBS 

1992 

5 

80 

f*B7 

U 

175 

2882 

15 

38 

1992 

5 

158 

1992 

5 

78 

1S32 

5 

IBB 


16 

75 

1997 

11 

108 

1882 

5 

46 

1982 

5 

38 

1898 

3 

125 

1897 

18 

181 

1992 

5 

48 

1998 

3 

75 

19BZ 

5 

7S 

1998 

3 

75 

19*0 

3 


Sto IN Pnod fcntew thOT 

-fiV* m Mo*mS trefc? 

7% «1% an*-: _ 

|*-4% J 188 Mp&THfryOfowrpge 
5% 180 

B 70.40 Hreres/YaMjtaRsit • 

(Z%) 110 TaawWht-M 

£2*} 198 Pwwfiqg 

6%. .188 Safcww&oftw* - 


i% . urn 
8% ■ ' in 


m i«i% 

m im 

8 83% 

14% 181% 

8 G2tt 

»4to 18148 

101 Vi 


SLttMi 


OsmsdwBfcCte-l 

AKZBhcdaatBrel 
Baaqot Partes 
QnriBatto 
UreRnsBrek 
Orion Bofri Bank 
taring Sacu&u 
Sakare Borins 



MUSH KRONER 
Export Or. 1 

158 

1988 

foM Export Cr.i 

150 

1880 

Finsfa Export Cr.i 

i» 

1981 

Dresrefci 

288 

198S 

Dcnki 

288 

1988 

8—4 

280 

191 


Rmisfe Exporter. 1 

Zttm 

1892 

tan Cw&ri tap. % 

Iflta 

1982 

Kymba Bac. Pomr £ 

28fan 

1884 

StonL nuian niilrer 

Norway 1 

fflte 

Bflte 

1892 

1892 


C*wreftkBk testate Bf 
Scditi Gtoinfc (d} % 


15ta 1882 
15te 1882 


/Men Tii 


NEW ISSUE 


Tte announcement appears re a matter qf record ai&j. 


MARCH 1987 



AB SvENSK ExPOKIKREDrr 

(Swedish Export Credit Corporation) 

(h\affpanttedmtheKmgfomcfSiuedenivithl^ 


150,000 Series II Warrants to Purchase U.S. Dollars 


Each of the Series II Warrants entitles the holder thereof to purchase 
from Aktiebolaget Svensk Exportkredit U.S. $500 at any time 
during the period commencing on 25th March, 1987 
and ending on 20th March, 1992, at a fixed price of DM 895. 


Bankers Trust International limited 


NEW ISSUE 


Tte announcement dfipcan as a natter cfrtoordorifc 


* ' MARCH I987 



AB Svensk Exportkredit 

(Swedish Export Credit Corporation) 

(Incorporated in the. Kingebro of Sweden with limited liability) 


U.S. $125,000,000 

7 per cent. Notes Due 1991 


Bankers Trust International limited’ 


County NatWest Capital Markets limite d 

Daiwa Europe Limited 

Goldman Sachs International Corp. 

The Nikko Securities Co., (Europe) Ltd. 
Prudeotial'Badie Securities Inrp mu rfonal 


Credit Commercial de France 
Enskilda Securities 

"-nffinnlrt. TitAiki, IhiMi.l 

Merrill Lynch Capital Markets 
Nomura International limited 
Salomon Brothers hte roatin fai Limited 


Svenska Handrisbanken Group 


Svnedbank 


Tokai International limited 


















% 


Fin a nci a l Times Monday March 30 1987 


t: 



CRENDON 

^SpacStmctures 

fcrip 

Industries • 

StBUCtURES L8WTH> 

.^ ,! £2Sgr 2 ° Mt " 


CONSTRUCTION 



25 


1986 FINAL RESULTS 


Transfonnation at the Midland Hotel 


BY JOAN OKAY; CONSTRUCTION CORRESPONDENT 



for Lesser 

“SSBR DESIGN * BUILD. * 

o£ me Lesser Group, £ 
wgdag on contracts with an 
own wwfll Of £20tn. The 
wn-k includes a warehouse -and 
Mowoom complex fox HeSdeF 

S&mm-s 

craiqaex ’ for 81 !^^ 

Mstitet Council; sir ^Search 
g” aevelojpmeat bufldings for 
5E* m 6 *** Research 

”£23 001 **»» for 
" * Qs headquarter offices at 
(aanffler’s Ford; 
laboratory for the PSA at 
g^owrt Dockyard; and a con- 
*5*“¥ and leisure complex at 
Effing ham Parte, Sussex. 

* 

gSTAlN CONSTRUCnON has 
contract 

by Lakeside Trading Estate to 
£££} a warehouse dev?lo£ 
g S .»». 1 l« n w« 

Called- Lakeside Retail Park, 
it is m ade up of four warehouse 
strartures providing a total of 
3WMMX) sq metres of retail space 
^ch will be sub-divided !mo 
D. self -contained retail premises. 
Costaia will also undertake land- 
scaping. to include a 1,200 mace, 
tarmac-surfaced car park, and 
a covered walkway to link all 
uu lts. The buildings, to be sup* 
ported on 8,200 precast rein- 
toned concrete piles, are con- 
ventional steel-framed structures 
dad in a profiled aluminium 
finish, with fairfaced blockwork 
walls internally to 2 metres 
abova floor level Roofs are of 
an insulating sandwich construc- 
tion, metal deck, and the floors 
win be of 12 inch thick rein- 
forced concrete construction. 
The contract has a duration of 
'50 weeks and is scheduled for 
completion in February 1888. 


In just six weeks’ time Fair- 
Clough will have completed a 
£3.0J5m contract to . transform ' 
Manchester's faded Edwardian 
Midland Hotel into me first 
Holiday Dm Crowne Plaza in 
the UK. 

This fast-track project has 
required 400 men on site and 
spending at me rate of up to 
£lm a month.' ■ ■ ■ 

The entire contract involving’ 
gutting, stripping ana restating 
to panelled ana gilded mag- 
nificence the &2. acre Midland, 
With its three and a. half miles 
of corridors, will have taken a 
total of 15 months. 

Fairclough was awarded the 
contract not just on price but 
also after detailed negotiations 
on performance. 1 

It only managed tn achieve 
such a rapid work rate as a 
result of what Mr . Rodney 

Anderson, managing director of 
Fairdough western division, 
describes as a “ honeymoon 
period." 

The company submitted a ■ 
preliminary tender and then; 


having been awarded a retainer 
-to the contract submitted a 
final price and firm timetable 
after working with the archi- 
tects, surveyors and Holiday 
Inn management to discover 
.exactly what was involved. 

The US-based Holiday Inn 
Company owns 49 per cent of 
me Midland. origmaUy one of 
British Rail's hotels. The re- 
mainder is owned by Commer- 
cial Union and me local 
authority. 

Much of the success of Fair- 
, dough’s contract will depend on 
the skills of pro- 

vided by William Irwins, a 
Leedsbased contractor which is 
carrying out the decorative 
plastering, gilding, marbling 
and woodwork- essential to re- 
storing the ornate hotel. 

The contract has also 
Involved solving structural 
engineering problems. 

Opened in 1908, the Midland 
was one of the first steebfiramed 
buildings erected in the UK, 
and presented problems when 
Holiday Inn wanted to open a 


Leisrare centre 
at Bournemouth 

RUSH & TOMPKINS has won 
three building contracts in the 
south west worth £7JSm including 
a £5.6m contract with Bourne- 
mouth Borough.- Council for a 
recreation centre at C h a s eslde, 
Lhtiedawn. 

Work is shoot to start on the 
7,000 sq. metre complex which 
includes a competition pool, twin 
external water slides, a multi- 
purpose sports hall, four squash 
courts, health and fitness rooms, 
changing facilities and a buffet 
and bar. The vaulted main roof 
is of timber with a 48 metre 
main span. Completion is 
scheduled for September 1988. 

In Poole, Dorset, a film con- 
tract with Wessex Regional 
HeaStfa Authority Is due to start 
for construction of Alderney 
geriatric hospital at Ringwood 
Road. The single-storey brick 
structure will have a 24-bed ward 
and day centre and is due for 
completion in July next year. 

Finally, in Nantgarw, South 
Glamorgan, the company has won 
an £80fUMM) two-month contract 


with British Airways for an 
extension to Hs engine overhaul 
facility in Caerphilly Road. 

+ 

WALTER LAWRENCE has been 
awarded building contracts worm 
a total of £7.9m. These include 
refurbishment of the Piccadilly 

- Park Hotel to include 90 
' bedrooms, a reception area, 

kitchen and restaurant together 
with new services. A new 
j mansard roof and facade repairs 
.will also be provided. This Is for 
' London Pari Hotels at £2.25m. 

- An elderly care unit at Gossoms 
End, Berkhanuted, for the North 

. West Hertfordshire Area Health 
Authority will cost flflm. A 
three-storey block of 87 flats at 
St Matthias' Church site. Hermit 
. Road, banning Town, for Spring- 
board waning Association will 
cost £Uim and include a single- 
storey church. Walter Lawrence 
will repair and refurbish, at 
'. £L4m, ISO flats at Bemerton 
Estates to the London Borough 
of Islington. This will be under- 
taken over 52 weeks. The com- 

K ls also building a ware- 
/afflee unit on two floors 
at Imperial Street, Bromley-ky- 
Bow, London, for Tesco at 
£500,000. 


braqpettfog ball to 700 
within the framework of the old 
hoteL 

With Ove Arnp as consulting 
engineers the problem was 
solved by inserting what is 
believed to be one of the largest 
bridge beam structures ever 
used in a building. Five metres 
wide and 5} metres deep, with 
a 19 metre span, and designed 
to carry a load of 8,900 (tonnes. 

This structure carries the 
weight previously borne by one 
main ’ external wall and four 
primary load-bearing steel 
columns, which rose seven- 
storeys above this level. 

To support the load from 
these four columns the bridge 
beams, were placed above them, 
supported by two new concrete 
columns resting upon new 
foundations. Once the new load- 
bearing structure was in place 
the old steel columns were teen 
cot away. 

* 

CRENDON STRUCTURES, of 
Long Creadon in Bucks, has 
won contract s for precast con- 

Glasgow houses 
modernisation 

DRAKE & SCULL (SCOTLAND), 
Glasgow (a Simon mn g faw.«»rriii» 
company), has been awarded two 
contracts worth £5.65m by the 
City of Glasgow District Council 
for modernisation of houses at 
HamQtonhill and GovanMIL At 
Hamit to nhfll, 480 houses will be 
modernised at a cost of £4L45m. 
The work involves all electrical 
and plumbing services, plaster 
work, carpentry and ri adding of 
the buildings using Superlit 
variegated stone finish acrylic 
wall coating. Completion is due 
by the beginning of December. 
Under an improvement pro- 
gramme at GovanhlU, 128 houses 
are to be modernised. This work 
is costing £12m and is scheduled 
for completion, in October. 

* 

SIR ROBERT MeALPINE & 
SONS has been awarded a £7.4m 
contract by South Glamorgan 
County Council for a five-storey 
magistrates' courthouse in 
Fitzalan Place, Cardiff. The 
triangularshaped building, with 


Crete structures valued at over 
£4Jun. The wing projects are 
to superstores, hi-tech units 
and office blocks. 

* 

MILLER CONSTRUCTION are 
to build a £3m time-share 
development— styled on the 17th 
century architecture to be found 
in Kanmore Village— on the 
shores of Loch Tay. The SO 
two- and fhrce-toedroomed houses 
will be built in the walled 
garden of the ancient estate of 
Breadalbane. This new Ken- 
more Club, just two boors drive 
from either Edinburgh or Glas- 
gow, is in the heart of - the 
Scottish Highlands. Each house 
will look down on a courtyard 
featuring two pavllllans and an 
original Gothic arch leading to 
h landing jetty. An adjacent 
leisure complex — which over- 
hangs the loch — will incorporate 
an enclosed swimming pool, 
squash courts, gymnasium, 
snooker room and dining and 
lounge facilities. Two tennis 
courts will also be built. Com- 
pletion Is scheduled for June 
1989. 

basement car park and roof -level 
plant rooms, will be of reinforced 
concrete frame construction and 
finished in brick, with detailed 
and intricate brickwork features 
to recessed door and window 
openings. Providing a total floor 
area of lOflOO sq metres, the 
building will house 14 air- 
conditioned magistrates' courts 
and ancillary chambers, with 
administration and service facili- 
ties. Work includes installation 
of five passenger lifts and a 
vehicle turntable at ground level 
to use by police vehicles. The 
project is due for completion in 
July 1989. 


R. MANSELL has been awarded 
a variety of contracts totalling 
£6.5m for refurbishment, repair, 
maintenance and minor works. 
Most are in London. The largest 
is for the demolition of 255-259 
Old Brampton Road, in south- 
west London, rad reconstruction 
with a five-storey building, includ- 
ing basement, under a £750,000 
contract for Qty Commercial 
Real Estate Investment; Work 
has started and is due to com- 
plete in February 1988. 


C0MPAGNIEBANCA1RE 

SoctetO Anonym* 

incorporated at France with Smrted BabEty. 
Regd. Office: S avenue KMber. Parts 166me. 


NOTICE TO SHAREHOLDERS 

In accordance with the authority provided by resolutions of 
leafing of shareholdeis 'passed on 



the Extraordinary General Meeting 
2Sth Apifi, 1985, the Board of Maraagernerd has decided that the 
share capital of the Company be increased from F7JT73, 707^700 
to FVtQR449,200bythe application of the sum of F234/74T.50O 
(standing to the credit of the Company's reserves) fai paying up 
in foil 23*7,415 new shares of FIDO and by the aBotment of tiie 
same fine from all encumbrances to the s harehoktere. 

Such 23^7,415 new shares cany the right to dividends in 
respect of an periods after 31st December, 1968 and are issued 
subject to the provisions of the statutes of the Company inaB 
other respects. 

The new shares will tank pari passu and form a single dass 
with the existing issued shares ones the dividend coupon In 
respect of the financial year 1988 and the afotment right have 
been detached. Both the new and the old shares w9 participate 
to the same extent In the profits for aB financial periods after 
31 st December, 1988 and In any repayment or partial repayment 
of the nominal amount of their capital. 

In accordance with the provisions of article 18 of the 
statutes of the Company, os regards both the assets and the 
profits of the Company, all such shares carry the right in 

proportion to the arnount of capital repreaented by each share, 

to the payment of equal net sums in any distrfljution or capital 

repayment, whether in a BquWation or otherwise, sp that for this 

purpose all fiabilitiBS to tax which may be assumed by the 
Company and the benefit of exemptions from tax which may 
accrue directly to the Company will be deemed to be 


Such 2L347/H5 new shares wifi be allotted among the 
holders of the existing issued shares, on the basis of 1 new 
share for every 5 shares held, ignoring fractional entitlements. 

Shareholders who would be entitled to fractions of a new. 
ahare may assign their rights to fractional entitlements to 
another such hokfer, save that no fcto aBotment will be made 
and the Com pan y wifl not recognise more than one holder for a 
single share. - 

As requited by law, the right to recerva an afotmentwffl be 

negotiable fri the same way as a share. 

The right to receive an allotment wH be exerrised by the 
transfer of the rights to SICOVAM. 

A holder of existing issued shares may transfer Ms right to 
receive an allotment of new shares. Tiw transferee will then 
become subrogated to the rights and obligations of the original 
holder as regards the exercise of such right to receive an 
aBotment. 

The new shares wifi be issued, to the order of the allottee, in 
registered or bearer form. 

Requests for allotment may be made on and after 31st 
March. 1987, free of charge, at the foBpwing paying agent's 


bi France: . 

Banque Paribas 
Socidte Gdn&ale 
Banque Worms 
Crtidit duNord 
Banque fedosuaz ' 

Banque Beige (Fiance) 

.... Banque Nationale.de Paris 

Caisse Centrals das Banques 
Papula ires 

• Credit Commercial de Franca 
Cr6dH Fonder de France 
Cr&dltlndustriel et Commercial 
Banque de FUnion Europdanna 
Banque Vemeset Commerdale de Pans 
to the United kingdom: S^G^AterttHB&Co. lid-- 

. Banque Paribas . 

Sod&t6G6n6rale ■ 

Ths unconsoBdated Bafenca Sheet of the Company at31st 
rbtf»mbBL 1986, was pubBshed tn the Bulletin ties Armonces 
Legates Obfigatoires dated 19th March* 1987, page 1061. 
Application te being made for qw^tion 

„ commane. in Pnfe «d in tendon on 31st 

March, 1887- - \ _ 

Andrfi Levy-Lang 

President of the Boart of Management 
COftffAGNEBANCAKE 

Registered acWresa:bavenueXfeb«LP^T»mA._ ._. : _ 


APPOINTMENTS 

Changes at Greenwell Montagu 


GRE ENWE LL MONTAGU 
SECURITIES. institutional 
equity broking end research 
aim of Midland Montagu, has 
farmed a new management com- 
mittee, reflecting its decision to 
become a broker-dealer rather 
than a market-maker. 

Mr Keith Brown Is now 
mabaglng ■ director. He was 
(tireotor of research and market- 
ing. Mr Martin Wonfor is 
appointed deputy managin g 
director, wifih overall responsi- 
bility for UK sates and resea r ch. 
Mr John Walmsley is made deal- 
ing director. Mr Ernest Fenton 
is named International director. 
Other members of the manage- 
ment committee are Mr Ed m o nd 
Bain, Mr John Finch and Mr 
Roger Harvey. 

Mr Michael Davids, Mr Ian 
MaedongaB. Mr Howard Myles, 
Mr BUI Troup and Mr Bony 
West are promoted to director. 

Mr David Guest becomes 
managing director of Greenwell 
Montagu (Far East), a new 
company based in Hong Kocg. 
He was previously with Hoare, 
Govett in Hong Kong. 

★ 

Mr D B Mouey-Cootts has 
been appointed to too board, of 
MAG GROUP. 

★ 

Sir Keith Bright has been 
reappointed c h airm a n and c hief 
executive of LONDON RE- 
GIONAL TRANSPORT to a 
further three yean until August 
81 199a 

★ 

Mr Hugh Gilbert retired as 
executive chairm an of the PRICE 
A PIERCE GROUP on March 25 


and his executive responsibilities 
have been devolved to the chief 
executive, Mr Christopher E. J. 
Allanson. Mr Gilbert will con- 
tinue as non-executive chairman 
of the group and as chairman of 
the trustees of the pension fund. 

SAVZLLS bad appointed Mr 
fniin Masterson - as- finance dir- 
ector. He succeeds Hr John 
Hancox, who has joined Charles 
Russell it Co. Mr Masterson was 
previously group financial con- 
troller at Vickers. 

•k 

SHIRES INVESTMENT has 
appointed Hr T*n«*a»i Bardie 
to tiie board as a nonexecutive 
director. Until his retirement 
in December 1988 he was direc- 
tor and general manager of 
investments for Friends’ Provi- 
dent Life Office. He Is a member 
of tiie investment committee of 
both Lloyds of London and Willis 
Faber. 

dr 

Mr Brian Quid has been 
appointed executive chairman of 
ISLAND INTERNATIONAL. He 
is a ttu waging director of H il l 
Samuel. Although leaving the 
bank, he -will remain as non- 
executive chairman of several 
subsidiaries in the HQ1 Sa mu el 
Group. ^ 

INVESTMENT MANAGEMENT 
REGULATORY ORGANISATION 
has appointed as directors Mr 
Douglas C. P. HeDougaO, Mr 
Keith K. Percy and Profess 
Richard G. SmethunL Mr Mc- 
DougaU is a partner In Baillie 
Gifford & Co. Mr Percy is 


% director of Phillips & 
id Management Mr 


managlnj 
Drew 

Smethurst is a deputy chairman 
of the Monopolies and Mergers 
Commission and a professional 
fellow of Worcester College, 
Oxford. 


Swire Pacific Limited 

RESUUS FOR THE YEAR BiDED 31ST DECQyiBHR 1986 

Tiie picfit far 1986 beibis tiie extiaonfinaiy lem was HK9I.7B4.7 nvfiaa an tecreaEa of 458% over 1B85L bi 
adetoon, in 1986 there was an exbaxxfinary profit dHK$l 382^ mWon (1965: HKS591 mffion). The audited 
consofidated reads were: 

fen- ended 3tst Decamber 



1986 

1965 


HKNfl 

HKSM 

lsnawr 

16,6084 

13.692.2 

Operating profit 

9fl9Q 9 

1,852.0 

Net finance charge* 

‘ 16SL2 

186-5 

twi opmmutQ prone 

2,761.0 

1,6635 

8hav gf pruOte teaa loaaea of aawnc land compariea 

115.1 

88B 

Profit baton taxation 

2^76.1 

1,7523 

Ihxation 

474 Jt 

215.4 

Praflt after taxation 

2,401^ 

1^36.9 

lHnorityiniotvatB 

617J8 

311.0 


1,784.7 

1^255 

Ex&aonflnary itema 

1^82J! 

99.1 

Pram aUrfeutabtoto aharatteUaa 

3.18BJI 

1^85.0 

Eraifnga par atom: 'A* ritrees 

138.90 

97.4® 

•B* shares 

27.Be 

19B® 

DMdenda per sham: W ahnea — Hterim 

18.06 

14.7® 

—find, iBcurmnanctod 

44.0* 

32-3C 


62.0* 

47.0® 

■B' shrew- Interim 

SUB* 

29® 

— fbwt, recommendad 

8 JB* 

6.5® 


' 12L4C 

9.4® 

Hat Bsoata per aharar W shares 

MCS6A4 

HKS4.81 

B* shares 

MC91J39 

HKS0.96 


T he pnit for 1988 belore the atfiaorrinary item 
increased by 456% and additionally there wb on 
extraortSnary profit of HK51282L2 riiBon arising him 
sate ci shares on iho fiotefion of Cdhty Pacfc Aiwtys 
UmjadEamlngapBf share, which hawe been calculated 
by reference to the praH before extraortinnry Items and 
Ita weighted average number o( stwes 'm issue during 
each yeat hawe been ad^sssd te reflect tiie capftafeetion 
issue mads In May 1986 Dividends in respect of 19B5 
ha» been simterty actuated. 

Cahay Rstific Airways United reported attributable profits 
.SSTtfe higher than those cT 1985. Hong Koog Abcraft 
Engkifiaririjj Company UmfecfsaflnbulabteFro© 
increased fay 2S3tfe. Swire Properties UrrBttd'BrBsute were 
again sharply higher as a teste at substanbaly Improved 
deniopment profits. Shipping, d9shae servtoes and 
dockyard actMfea recorded tosses in depressed market 
<xmffions.TherewasaluritiarimpRMmartlnthBopBrailng 
profit of the fadudrissrivision during 196& Thatradrx} 
dhrigionhadawrygoodyeac 
Final dMdanda. Tha dractora of Swire Faofc LMtedvdi 
recommend to shareholders at the annual general mealing 
on 28rn May 1987 the payment a( final dvfctencfe Of 440e 
(1985: 323t) per ‘A* share and SSs (I96S: 856} par 'B' 
share payable on 2nd June 1B87 to shareholders registered 
cxi 24tfi Apri 1987', the share registers wS be draad from 
IQh April to 24th April 1987, both does inclusive. 

Once again, the firW dvfetonds vM be satisfied by the 
Issue of scrip to aeeh dass of sharahokta with tiie opfion 
being gnen to shamholdos to alact lo receive cash in ieu 
of step in respect of part or afl of such dvidenda FU derate 
of the scrip dvidend preoadnswi be set ax In a draukr 
taner which, together wflh the lonns of election tor tiie 
ptymart or cash cfvidenda wa be sort to shareholdeis 
on 4th May. 19871 

CapNaflamlon taeua. The cfiractore vril recommend a 
captefisadon Issue cf cna new W share lor every five 'A' 
shares held and one new 'B' share far every five 'B* shares 
held on 24th Apr* 198?’. The new shams wil rank pan passu 


with the exiting shares, escepr tha they wi« run quafify 
far faa final cWdends lo be paid In respect of 1988 k is 


on 2nd June 1967. 
hmatmaM prepartlam and net i 
In accordance irth tiwpoficy of the GrouR the anrwd 
v^uation st open martel value oi irarestmere properttee 
was carted out at 31st December 1986 by ptofesaionaly 
quafliad esecutnes of Swire Properties Lknited. As a con- 
sequence oftha 1986 vakiEdon there has been an increase 
of HK5834J0 mffon in the valuation reserves of the Grnupi 
ascomperedwUi an increase cfHKSaSMmOonathd- . 
end of 1995. ‘faWng Wo account both the retained epmihgB 
fa 1968 and the increase In Bw valuation of inrestmeri 
properties, the rW asset values ol faa shares of Swire Pacific . 
Umied at 31st December 1G36 were HKS&94 per 'A' share 
and HKS189 per 'ET share, which compare respecfiwly 
wto HKS481 and HKS096 at 31« December 1985 after 
BcfrESnerl to refloct the cap ta feaeon issue made in T98& 
Piusp ec te . 1967 hm started vrefi to Cathay Pacfic Always 
wWch loote fafwsid to another good year provided tha 
the present favourable contflnns, inducing relativeiy sfable 
fuel prices, generally peracsL Swire Prapeitiea expacta 
farther good rasuls both from properties UTder develop- 
moit tar ada and frem its investment property portfaia 
Prospects lor continued growth in industries efivision dufag 
1887 are good and the tracing division is also looking far 
improved resute. The dipping, cflahore services and 
dockywd cfivWon bwpseted lo have mxXher cHficul yeac 
In the prasert gensraly favourable business c&nda 
prospects far the Swire RacSc Group as a whole far 1987 
ob good and we took to the fakxe wto conlidanca 
The Annual Report far 1386 wfl be sent to rinreholdaa 
on 4th Irby 1987. 


Hong tong, 29h March 1987 


H.M.P. 

Gherman 




Swire Pacific limited 



The Swire Grocm 


Swire House; Hong Kong. 



Banco di Santo Spirito S.p. A. 

(incorporated with limited liability in the Republic of Italy) 

London Branch 

(licensed deposit-taker) 

U.S.$200,000,000 
floating Rate Depositary Receipts 
Due 1993 

In accordance with the provisions of theNotcs, notice is hereby 
given that for the initial interest period from March 30, 1987 to 
September 30, 1987, the Notes will cany an interest rate of 
63fo% per annum. The interest payable on the relevant interest 
payment date September 3D, 1987 wjH be U.S.S329.G3 for 
Notes in deuommations of U.S.$10,000 and U.S.$3,290.28 for 
Notes in denominations of U.S. $100,000. 

By: Tim Chase Manhattan Bank, NJL 

Agent Bank 
30 March 1987 


o 


Republic of South Africa 

115475400,000 

Hoatahtg Rate Notes 19M/I989 


Tha Rata of intwast appllubls fa 
Hut Interest Pvriod from March 30, 
1887 to September 29, 1987, Inclu- 
sive ly, wee determined by Dreed ner 

Bank A0 (London Breach) u Ref. 


Frenkfart am Mala 
rr» Marefr 1967 . 


arenca Agent to be per cent 
per annum. Therefore, Interest per 
Note of U £31 0,000 principal amount 
is dua on September 30, 1987, the 
relevant Interest Payment Data, in 
the amount of USS341.81. 

Dresdner Bank 

Principal Paring Agent 
Akttaogaairiladiaft- 


Notikxof Mandatory Partial Redemption 


SEK 


AB Svensk Exportkredit 

(Swedidi Export Credit Corporation) 

(Incorporated in tbe Kingdom of Sweden with Kmifert fiabSity USS 100,000,000 143% Bonds due 15ih May, 1990) 

NOTICE IS HEREBY GIVEN that pursuant to the provisions of Condition 6 of the Bonds, USS 25,000,000 principal amount has been drawn for 
redemption at their principal amount, through the operation of tbe mandatory smiting fund, on the not Interest Payment Date being 1 5th May, 
1987, when interest on the Bonds will cease to accrue. 

The serial numbers of the Bonds drawn for redemption are as follows: 


2 

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336 

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690 

909 

1072 

1245 

1427 

■ Mji' 

1792 

■ L >/, 


T 7 T 

m: 


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385 

345 


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187 

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693 

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696 

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707 

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207 

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B r y j : 

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310 

363 


738 

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B.Vy' 



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5761 

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6313 

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-V.'-I'M 



Accordingly, on 15th May, 1987 the Bonds so designated for redemption will become due; Repayment of principal will be made upon presentation 
of the Bandit with all nnwiahw H fnrrpmn afterirpd at the nffire nf qny ppa pf fh$ Paying Aynts mentioned thenum- 

Accrued interest doe 15th May, 1987 will be paid in the normal manner against presentation of Coupon No. S. on or after 15th May, 1987. 

The remaining balance of tiie principal redemption will be utilised against the Registered Holders. 


0 ' Bankers Trust 
Company, London 
30th March, 1987 . 


Agent Bank 


■- r- 


y ■: 













UK COMPANY NEWS 


Richard To mkins previews the forthcoming offer for sale by Pickwick 

Putting its strategy on the right track 


JOHNNY MATHIS, Thomas 
The Tank Engine, Yehudi 
Men uhin and ias Botham may 


Thomas company front 1077 to 1882, 
Yehudi Pickwick has won independence 
am may and pursued a vigorous dtverei- 


appear a disparate bunch of fiction into other home enter- 
characters, hut the names do taimnent products. 


share one common element: all 
appear on products distributed 
by Pickwick, the company once 
best known as a cat-price 
record labeL 


Hi 1883, Kckwick linked with 
Ladybird to produce the popu- 
lar book-an&easeette format 
known as Teli-A-Tale. This 
range includes fairy tales, 


, | C nursery rhymes and children’s 

The breadth of interests is “5 *>,a 


7 or it stores, “d the company has 
important to Pickwick, fm ' it tte b 0 cfc«nd*assettB 


no longer wants to be asso- 
ciated only with the slightly 
outmoded black vinyl image, the 
company ia poised to present 
itself to the stock market, and 


rights to characters such as 
Thomas The Tank Engine, and 
Masters of the Universe. 
Compact discs were intro* 


when it does so, it will be as duced In 1985, when Pickwick 


a broadly-based distributor of 
home entertainment products. 

A flotation on the main 
market is due in mid-May at 
a capitalisation of about £25m- 
Unusually for a company of 
♦hia size, an offer for sale Is 
planned, with N. M. Rothschild 
as sponsor, and Ho are G ovett 
as broker. 

Pickwick’s origins go back In 
1958 when Mr Monty Lewis, 
now the company's 68 -year-old 
chairman, set up Gala Records, 
the first company in Europe 
to re-issue and re-package 


became the first In the market 
to produce budget classical 
CDs. Its IMP label, which sells 
at £7.99 compared with £12.99 
for other label s, is one of the 
biggest in the UK with about 
15 per cent of all classical CD 
sales. 

The latest diversification baa 
been into video cassettes, which 
began last year when a market 
developed for cheap pre- 
recorded videos selling at 
under £ 10 . 

Pickwick has exclusive rights 
hi the UK to distribute a range 



investors led by Rothschild Ven- 
tures. At the same time Mr 
Ivor Schiosberg, the 40-yearold 
former chief executive erf the 
SPM Record Group of South 
Africa, was brought in as man- 
aging director. ■ „ . .. 

One reason for the flotation 
is to provide a market for the 
shoes held by the investors, 
Pickwick is cash rich and will 
probably raise only around 
£ 3 J 5 m in the offer for pale to 
buy out the institutions' redeem- 


Hobson sells 
loss-making 
subsidiary 
to Swedes 

B % C hy Harrb 


Hobson has completed its 
conversion to overseas trader 
by selling its lossmaking 
Albatross, a patented alnmt- 
nhun die-making process, to 
gkandin&viska Aluminium Pro- 

^The Swedish ahnuiniiiin ex- 
truder will pay £ 100,001 and 


£4m worth <rf Stock 

- *“ * SSSf. fc*s5 


JV2? tor“2te ETuSM to June ; WM. 

rather than a lower-risk placing iaon’s ** 

because it will create more offered Jobs in Sweden, 
publicity — and help raise the SAP was the first co 
company’s profile. to buy production equ: 


1882 83 


5c«WS *ST>S of 5 *™ •SJSXSBP'JBSl 


his business on vldeo - together with similar 

MA fiSSSS » "Ej 

nnded witolS 

onal of the US. s®™* “ Botham s Ashes. 
Hdwkk conoen- 010:633 of operahon 

aSronMMd «“* be gauged from the fact 
££ baS- il 8 Screen Legends distoi- 
eiaS button subsidiary is currently 
P_-5 Pj responsible for 19 of the top 

SPSS'S 20 Selling videos In Britain. 
FfSlS Si yoer. Ptekwk* also set 


years later, he took his business 
Into the Pickwick company, 
which he co-founded with Pick- 
wick International of toe US. 

At first, Pickwick concen- 
trated almost entirely on record 
production, licensing back- 
catalogue pop and classical 
material from record companies 
and repackaging it under the 
Pickwick label. It added cas- 
settes in 1972. 

In the last five years the 
company has undergone a con- 
siderable change. Haring 
extricated Itself from an ill- 
starred takeover by American 
Can, which had control of the 


up an international division 
which licences record com- 
panies to supply records over- 
seas- — using toe digital master 
tape of Pickwick’s own classical 
recordings. 

Pickwick’s recent expansion 
hag largely been achieved 
through the exploitation of its 
extensive distribution network. 


w — the issue will depend on how 

the market perceives the 
meat products onto the exist- price, bat as least one leisure 


ing distribution network, so sector analyst perceives toe £ 3,991 in 1985 and £ 6 * 
achieving maximum increase in company 9 s fundamentally at- the first half of last year, 
sales at minimum increase in tractive. „ , Pre-tax losses grew 

overheads. _ Mr Peter Hither, of Barclay b **-, 77 = in 1904 to £213. 


The track record shows that da Zoete Wedd, says Pickwick’s 


Pickwick's recent expansion toe strategy has begun to «mu has been to recognise that 
frao largely been achieved work. From toe mire of heavy distribution is one of the keys 
through toe exploitation of its losses in 1982 which followed to toe business, and to have 
extensive distribution network, a disastrous venture into full- built up a network of customers 
winch reaches outlets in virtu- price record distribution going far beyond the usual 
ally every high street in the under American Can, profits record retailers. 

UK. have rocketed over the past “It’s a relatively risk-free 


UK. have rocketed over the past “it’s a relatively risk-free 

Nearly all the major multiple year as the new activities have stock compared with r® 
retailers, including W. H. come on stream. companies geared towards 

Smith, Boots, Tesco, Asda and In June, last year the first popularity of toe artists 1 
John Henries, stock toe full step towards a flotation was sign up. Pickwick is banc 
range of Pickwick products. taken when Mr Lewis sold 44 a distribution syst em with 1 
Pickwick's strategy is to per cent of Pickwick’s equity a small semi-creative nm 
graft other home entertain- to a consortium of Institutional meat in toe music industry. 


year as the new activities have stock compared with record 


come on stream. 

In June, last year toe first 
step towards a flotation was 


companies geared towards toe 
popularity of toe artists they 
sign up. Pickwick is basically 


Pre-tax losses grew from 
£87,775 ia 1984 to £213,002 in 
1985 and £122,091 to the first 
half of last year. Hobson had 
forecast that ^le process 
would lose up to £290,000 in 
toe 15 months ending to- 
morrow. 

This loss will now not appear 
in Hobson’s trading results, 
but toe group faces extraordi- 


taken when Mr Lewis sold 44 a distribution system w ith only 
per cent of Pickwick’s equity a small semi-creative involve* 


nary write-offs 
£700,000 reflect!] 
pany loans owed 
diary. 


of about 
inter-com- 
f the subsi- 


MBS share placing and rights 


Blanchards 


BY RICHARD TOMKINS 


us$ 100,000,000 

Household Bank f.s.b. 


[ MBS, toe computer supplier 
which was rescued through a 
management buy-to at toe end 


MBS Bald it was raising the out on April 14, and are 
money to finance expanding expected to show that first-half 


Coflatendhed Floating Rate 
Notes due Jane 1996 


For the three months 26th March, 
1987 to 26th June, 1987 the 
Notes will carry an Interest Rate 
of 6.7125% per annu m with an 
interest amount of USS&57. 71 per 
USS50.000 principal amount The 
relevant interest payment dam 
will be 26 ih June, 1987. 
listed on the Luxembourg Stock 


management buy-to at toe end sales. Turnover bad grown from losses of £3.41m have more than 
of 1985, is to strengthen its £ 66 £m in 1985 to an estimated been made up by profits in toe 
balance sheet through a share £i 20 m last year, and had now second half. However, there is 
placing and a rights issue, taken the company close to its also likely to be a substantial 
which will coincide with its borrowing limits. below-toe4toe write-down on 

preliminary results in two the issue will also cut MBS’s £3m worth of rental stocks- 
weeks’ time. heavy debt/equity ratio. At MBS’s new management team 


also likely to be a substantial 
beiow-thetoie write-down on 
£3m worth of rental stocks- 
MBS’s new management team 


Tha nrnunv win niw B w present, it has borrowings of Is headed Mr Owen Williams I 


F.T. Share information 

The following securities have 
been added to toe Share 
Information Service: 

Bio-Rad Laboratories Inc A 
(Americans). 

Eastmaque Gold Mines (Mines 
— Miscellaneous). 

Investment Trust of Guernsey 
(Investment Trusts). 

Kynoch (G. & G.) (Textiles). 
mil Research (Paper). 

]H>mnlnft fla pltnl ft Inwwn fl 

Trust 2001 (Investment Trusts). 
Staley Continental (Ameri- 


thhr CONTINUING downturn 
to the Middle East market and 
toe resulting delay to starting 
major projects there saw 
epuiKiMiii** interim profits fall 
37 per cent to £254,000. 

The interior design and furni- 
ture retail group reported 
slightly lower turnover of 
£3.16zn for the six months to 
December 81, 1986, compared 
With £&&n in 1985. 

Earnings per share fell from 
4.42p to 2Ap, but directors have 
declared an interim dividend 
up from 3,5p to L65p. 


of s. 5 m itharcfl at Rftn ami convertible loan stock, com- IBM directors whose buy-in was 
a ISiSSS ridS pared with shareholders’ funds . backed by Chase Investm^t 

nearlv 10.1m shares at the °f about £5 Jim. Bank. They staged a £73n> 

JSe nric? MRS? The figures for 1986 are due’-rescue righto last year. 


0 Banka* Treat 
Company, Lon 


Company. London AyntBank 


nearly 10 . 1 m shares at the 
same price. MBS’s stoting 
shares closed 5p down at 106p 
on Friday, before the announce- 
ment was made. 


Southampton IoW profit leap 


Paine Webber Group Inc. 

VS. $200,000,000 

Subordinated Floating Rate Notes Due 1993 


ITT FINANCIAL N.V. 
U.S4100, 000,000 


Three Year Extendible 
Guaranteed Notes Due 1996 


Unconditionally Guaranteed as to 
Payment of Principal and Interest by 


ITT FINANCIAL 


Southampton, Isle of Wight 
and South of England Royal 
Hail Steam Packet, the shipping 
and road haulage company, re- 
turned a substantial rise in pre- 
tax profits from £l-28m to 
£2 .55m in 1986 mi turnover that 
moved ahead, from . £9.42m to 
£10B9m. 

The directors said that the 
ferry, hydrofoil, towage, road- 
haulage, engineering divisions 
and the property development 
side had all contributed to toe 
profits increase, and that fur- 
ther investments continued to 
he made in property develop- 
; meets. 


The directors proposed a final 
dividend of I 6 p ( 12 p), m a kin g 
a total of 20 p (16p) for toe 
year. 

Tax charges totalled £689,403 
(£273,748) after which earnings 
worked through substantially 
down' at 5.75p (29.57p). 


For the six months 

30th March, 1987 to 30th September, 1987 
the Notes will carry an interest rate of 6% per cent 
per annum and interest payable on the relevant 
interest payment date 30th September, 1987 will 
amount to U.S. $351 -39 per U.S. $10,000 Jfote - 
and U.S. $3,513-89 per VJS. $100,000 Note. ~ 


B ft H HALL (DubMn-based 
grain merchant) — Pre-tax profits 
I£3m (IttAfen) for 1986 from 
turnover of £661,800 (£135,011). 
Dividend 4Ap with 33p final. 
Earnings per share 1038p 
(7.66p). 


By Morgan Guaranty Trust Company of New York, London 
Agent Bank 



BOARD MEETINGS 

TODAY 

Interim* — Old Court Intetnaaotial 

FUTURE DATES 

Rwal* — 


Final* — Acorn Computer. Amort, 

Blpol, Blackwood Hodge, Bouatead. 
Britiah Syphon Industrioa. CCA 
Gallerias. Campari International, Owafe 

Billam (J.l 

Biomechanics International ... 
Britiah Alcan Aluminium ...... 

Oevfoa and Matealfo 

Apr 2 
Apr 9 
Apr « 
May S 

and Ganaml Invaatmonte. Eaacutax 
Clothes. Jama* Halataad, Mandara. 
Plaamac, Rlchardsona Weataaith, 

Foist Group 

Gaem Gross 

Highcroft Invaatmant Trust ... 

Apr 9 
Apr 3 
Apr SO 

Eatataa. 

HMW Computers — «... 

Mar 31 


All the securities having been sold outside thaUnited States cf America, 
this advertisement appears as a matter of record only. 


New Issue 


March 1987 


ICN Pharmaceuticals, Inc, 

Costa Mesa, California, USA 



International 
Financial Services BY. 

DM 300,006.000 
noriiagBsto Nates Dm 1996, 


Interest Sate: 4 Vib% 

P gf ftflUUIB 

Interest Period: 30to Marti, 

29th June, 
1987 


Interest Amount 
perDMlOOOO 
due 30to June, 


DM10382 


Interest Amount 
perDM250j000* 
due 30th June, 


DMR59&42 


Irinkaas & Bmkhardt KGeA 
Agent Baak 


Wells Fargo 
& Company 


VS. $100,000,000 


Subordinated 
Floating Rate 
Capital Notes 
doe September 1997 


In accordance wito the 
provi sions o f the Notes, notice 
is hereby given that for toe 
Interest period 
30te Mard£lSfc7 to 
30th June, 1937 
die Notes wffl cany m Interest 
Rate of pec annum. 

Interest payable on the tdevaut 
interest payment date 30th 
lone, 1987 win amount to 
USS169-31 per US$10,000 Note. 


Agent Bank: 
Morgan Guaranty lYnst 
Company of New Yoto 


Swiss Francs 60000000.- 

3 V 4 % Subordinated Double Convertible ^ Bonds of 1987 due 1997 


Exchangeable for Commcai Shares of 

ICN PHARMACEUTICALS, INC., GBA-GEIGY LTD or 
ICN PHARMACEUTICALS, INC. / C1B A-GEIGY LID 


HNTRELEXSA 


E. GUTZWELLER & CDS, BANQUIERS 


Alpha Securities AG 
Banco Exterior (Suiza) S.A. 
Bank Heusser & Cie AG 


Banque Scandinave en Suisse 
Samuel Montagu (Suisse) 5LA. 


Banca del Sempione 

BKA Bank fur Kredit nnd Aussenhandel AG 
Banque Bruxelles Lambert (Suisse) SA. 

Chase Manhattan Bank (Switzerland) 

Compagnie de Banque et dTnvestissements, CBI 


Nippon Kangyo Kakomaru (Suisse) SA. 

Nnr dfinanz -Bank Ztirich 
Sotietd Bancaire Julius Baer SA. 
Swiss Cantobank (International) 
The Royal Bank trf Canada (Suisse) 



/ MANtFACTlRtRS V 



NWmCORPORAnON 


MANUFACTURERS 
NATIONAL CORPORATION 

(Incorporated in die State of Delaware) 

U.S. $60,000,000 

SUBORDINATED FLOATING RATE 
NOTES DUE SEPTEMBER 1996 
ISSUE PRICE 100 PER CENT. 


In accordance with the provisions of toe Notes, notice is 
hereby given that tor the Interest period from March 30, 
1987 to September 30, 1987 the Notes will carry an 
interest rate of B¥t% per annum. The Interest payable on 
the relevant Interest payment date, September 30, 1987 
will be US$346.00 for Notes in denominations of 
US$10,000 and US$8,625.00 for Notes in denominations 
Of US$250,000. 


By: The Chase Manhattan Bank, FLA. 

Agent Bank 
Match 30, 1887 


O 


Financial Times Monday Maw* 30 198 ? 


Dalgety seeks buyer 
for Canadian offshoot 


BY RICHARD TOMKINS 


Dd gety, the food and ctffli- 

rnodEim 
firmed speculation «™ 
seeking a buyer for Baifoar 
Guthrie ‘ (Canada)* its 

Vaaoouverhased ttabgropea* 
torn. A price tag of £70m has 

been put mrifee 

Dalgety has asked Lmrd 
Brothers of the VK «£Pem- 
bertoc, the British Columbian 
merchant bank to for 

buyers fo? Balfour Guthrie and 
Us subsidiaries in Canada, the 
UK end Japan. The search is 
expected to take several weeks- 


Balfour Guthrie 4s Canada’s 
seventh largest lamber pro- 
ducer. In ihe year to Jane 1988 
it contributed turnover of 
« 5 to and trading Profits of 
just over £7® to Dalgely’s 

Canadian lianiber indus- 
try taa suffered from labour 
relations problems in the past, 
hot Dalgety sadd yesterday that 
toe sale was dictated fr y th e 
group’s strategy of concentrat- 
£g to food activities. Balfogr 
Gffthrie is its largest tunrfood 
business. 


i Mictt y— and help raise the gAP was toe first company 
impany’s profile. to buy production equipment 

The success or otherwise of based on too Hobson process, 
e issue will depend on how Unfortunately tew otoers 

. — j 0ined ^ Hobson reported no 

sales to 1984 followed by 
£3,991 in 1985 and £6,376 in 


Pifco advances 24% 


«fM Holdings. Mapffhe ster- man a gfag director, ®f{4too 
tJed ^ipliancee com^^ 


SSfodSS^rt «S£ 

SSnx profits percent to tojtag at a number .of 
£506^)00. Earnings per 20p share possibilities. 

out at 7J9p, against 5.41p, Trading profit for the -six 
and ihe interim payment Is. months to October 31.1M8 
being raised from L76p to 2JSp - moTe than ' doubled to £459,000 
to reduce disparity. (£ 220 , 000 ) on' increased tutor 

The company also revealed' over but .the company did not 
at it had made an nnsucoeso- jeveai the figure. Mr Webber 


that it had made an nnsucoesa- xeveal the figure Mr Webber 
ful offer for TTs Russell Hobbs/ t^, a t sales in the second 
Tower b u sinesses which were ...aanimhitw 




Peck earlier this year. . Mr 
Michael Webber, chairman and 


and trading . profits would not 
show the same, growth..: ; 


George Oliver 
£1 ,5m profit 

George Oliver (Footwear) 
turned round toe losses of 
£ 212,000 incurred in toe first 
half into pre-tax profits of 
£1.46m for 1986 as a whole. For 
1885 profits of £L. 66 m Were 
achieved. 

The company, a footwear 
distributor, improved turnover 
hr 23 per .cent; from £42 .89m to 
£5421m» but trading profits 
were lower at £L7m (£L83m). 

The directors are recommend- 
ing mi increased final dividend 
of 8 jQ 2 p (7J2p) bringing the 
total lp hitter to lOp. Ea rnin gs 
worked through 0.9p higher at 
25L27p (2237p), after a fall in 
tax from £437^)00 to £182,000, 


Mnntpa Brothers 
in red midway 

• Hnnton Brothers, a manatee- 
turer and designer of clothes, 
suffered a pretax, toss, of 
£373,000 to the six months to 
December 31 1986 against' a 
profit of £360,000. Turnover foil 
from £6.71m to £ 5 An. 

The board said ttite by 
re str uc turi ng the compto/s 
production facilities to order to 
remove surplus capacity, 
Munton should be to a position 
to returo-to profitable trading 
based upon c u rre n t sales levels. 

Total sales for the current 
year were unlikely to exceed, 
those of last year and accord- 
ingly the board saw. little sign 
of any immediate I mp rovement 
in the company’s trading ,: 



U.S. $200,000,000 

Bankers Trust Overseas Finance N.V. 

betapoated In daeNednfandi Antffln 


G uaranteed Floating Rate 
Saboxdmated Nbtefifme .1994 


For the three months 
30 March, 1987 to 30 June, 1987 
the Notes mil carry en interest rate of 6 1 Vta per cent 
per annum and interest payable on the relevant 
interest payment data 30 June, 1987 against . 
Coupon No. 19 will be U.S.$17*09 per US. $1,000 'C. 
. Note and U.S4170.90 per U.S. $10,000 Note. 


By fttorgan Guaranty That Company of New Yorit London 
Agent Bank 


American Express Bank Ltd. : - 

U.S. $100,000,000 > 

Roofing Rate Subordmated Capital Notes Due T977 ' 
Notice is hereby aiven that the Rate of interest has beer;: 
fixed at 696% and that the interest payable in respect of.’ 
U.S. $10,000 principal amount of Notes for the period! c 
March 30, 1 987 to June 30, 1987 will be US$169.31. 


MonhSO, 1987. London 

By; CFfeank, NX (CSSIOcpi), Apart Book CITIBANK © 


* * 


GRANVILLE 


SPONSORED SECURITIES'- 

Captallaata. 

0300's ' Company 

ajvn Asa. Brit. Ind. Old. 

— Asa. Brit. Ind. OILS 

Chaags Gross Yield. . -' ‘ 
Price on weak dlv.(p) % tjtlZ 
Ito — 7.3 4 jB* 13 

163 — ion 0.1 

B»2H> 

71,046 

BBB Design Group (U8M) 
Bard on Hill . 

78 

■ : — ’ 

i A ti':t ton' 

R232 





486 

1JB0 

ISjOB 

CCL Group Ordlnery 

CCL Group 11 pc Conv. Praf. 

133 

100 

+ 1 
+ 1 

2 3 2Jt %*-■ 
18.7 

65B 

1,698 

Carborundum 7Spo Prsf. 

Gaorge Blair 

94 


10.7 1M-;.jf ' 

4,711 

9039 

Ind. Precision Castings 

1T6 

+ 1 

eft-O W-8 • sfl iT i 

8.7 . ih.’iito'-. 

0A67 




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51JJ90 





3^22 

61^64 

0,303 

2.322 

880 

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MuftHwuss H.V. (AmstSE) ^ 
Record Ridgway Ordinary «. 
Record Ridgway' lOpo prsf. 
Robart JanUna .. 

82 

008 

361 

60 

+ 1 
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+ 4 
+ 2 

12.9 1441 | Uk. 

— — . »u- ■ 

— . .-: m ■ 

14.1 104 . - : 

3.420 

Scruttons ..... 




3,759 

Torday and Carlisle 




1A09 

Tiwrian Holdlmn 



O.i 3-/ ITei J 

17J500 

Unllook Holdings (SE) 




33,703 

Walter Alexander 




4.504 
4325 - 

W. S. Yeats* 

W4*t Yorks ind. Hosp (USM) 

103 

102 


e.o sa , 134 ■ j 
174 0.0 W4 - ] 

6.6 BM :%& \ 


Gnn^Se & Company LJadted 

81cret lamtt Lonfcn EC3RSP 
Telephone 01-621 1212 

Member of FlMERA 


Gnznflle Dmtea Cakmaa Limfeei 

S 271^ Uae, LookmECntaar 

Membet of the .W 




Armand von Ernst & Cie SA. 
BanAtlantico Zurich AG 
Banca Solan & Blum SA. 
Bank Langenthal 
Bank in Langnau 
Bank Rohner AG 
Daiwa (Switzerland) Ltd 


Kredietbank (Suisse) SA. 
Iioyds Bank pic 
Overland Trust Banca 
Rucgg Bank AG 
Sfaearson Lehman Amex Finance SA. 
The Industrial Bank of Japan (Switzerland) Ltd. 
The Long-Term Credit Bank of Japan (Schweiz) AG 


(Mlnaiy 


90.76) 91^2 1 9L56I 9U6| 9229) 92M\ 9431 


97 A3 


1620*1 1614.91 1623h| 16252 


10943 


185.7 

( 734.71 


INGEBA Internationale Genossenschaftsbank AG The Nikko Switzerland Finance Co. Ltd. 



1 Z 1 A\ 49J8 


5033 


49 A 


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ffBanrial Times Monday 30 1987 



\j£*& 


27 


EDITED BY CHRISTOPHER LORENZ 


tSmtSSl*"* ““fee 

sssffA'sssrP*-* 

sSSSSS*"-- 

gte f^eraan g officer of Kay- 
«y Enterprises lac, could 6c 
*g^6 Q%jwy gin at foe way 
woited out since 
Gwena Edwin ICeeaefe 
£™8»l*y commiBsioo sent 


.«*K5ffi5B35 

warned Ha 

of being Hwotwd in 
.^J^rabotion of pon- 

7*E2sTCa comenieflcn 

3®** *° <fr°P toe xaaga- 

ztne - Mve months later, ftra 

SEpwaa 

aeSdeS^ “ *' ^ 



CbirMe Hcfnen wHiiqi mote un derwe ar dan Calvin Kktn 




seeking to 
its image 


BY DAVID OWEN 


!“£*««* circulation, courted 

■ ^^SSSSZSSt 

Z r j s , v ^ 1 toe company in- 

SPSifi' 4 ? 1 endSaJune 

^. prom pted the vultures to 

“KaySS^tiS 

5^t^^l proclaime 4 News- 
weeK magamre at the flw* 

^Mjto^imnisBjon has since 
»e« werofled upon to ctimb 
ow^ firom some of its loftier 
S^SSS^S^' Not only was 
SiiSSS S*" Obtained which 
~5?“® k to rescind awH «. 

P«d®te toe initial letter (Play- 
filed a suit for to- 
g^S^d^ages). But follow- 
tog widespread criticism of a 
********** report dUrtg l 
relationship ’* between 
pornogaphy and violence, toe 
feft moved to clarify 
saying tt was refer- 
nng only to hardwire material. 

h^uL^ ? *** height of 
“etoerw actually exploit- 
ing this criticism of the com- 
mi^ion for bracketing Playboy 

win its litany of pornographic pany's video sector. wm^unui un »»«>u-»o« ^ _ , 

22“ to reposition toe company formed the video division in approach is to translate toe ?T w 5,” 

Hmly at ann s length from, the 1982, her first year at toe helm, quality and diversity of toe i* 

rtmreUng X-rated industry. It is .widely regarded as the 
ane has earned toe breathing company’s most promising 
to do this, after years of potential growth area domestic- 
todifferent results, by progres- »Hy and overseas, 
ovely paring Playboy down to The successful centrefold 
what she sees as “the three videos will, of course, con- 


lessly since its original role as 
the cutting edge of the Ameri- 
can sexual revolution fell 
victim to its own success ■■ 
rendered redundant because it 
found itself preaching to toe 
converted. 

While Hefner says that she 
wants Playboy to be seen as 
“ the magazine that 
leisure seriously"- the stepped- 
up diversification from soft- 
core pornography wfll be most 
dearly apparent in the com- 
Hefner 


a deal to take it into toe in- 
formation video field — of the 
Playboy Guide to Photography 
ilk. While toe opportunities 
for cross-pollination with toe 
magazine and the organisation's 
hlghlyprofitable licenrfng/zner- 
ffhawriiaing business are plainly 
apparent, the main attraction of 
such a move, says Hefner, is to 
get Playboy videos into non- 
specialist outlets such as 
camera shops. 

The company eays that the 
Intention behind Ms broad-baaed 


profit centres that we want to 
form toe core of toe company" 
and slashing costs to put it on 
a sounder if still Insi pid 
financial footing. “The future 
prospects of toe company are 
probably better now than they 
have been at any Hm^ in the 
recent past," says David 
Leibovitz, an investment 
banker with American Securi- 
ties Corp in New .York. 

Hefner's strategy promises to 
restore a coherent sense of par- 
pose to an organisation which 


tinue. But two distinct develop- 
ments are in the pipeline in a 
bid to differentiate Playboy 
products from the w elter of 
cheaply-produced ririiriHrirs 
which tend to p roliferate in 
many video outlets. 

First, the company is 
developing a racking process, 
designed to bring all Its 
cassettes together out of toe 
X-rated category. Hefner is 
aiming to place toe racks in 
some 2,000 outlets within four 

iqimthw. - 


has tended to drift rather _ain*- ... Second*. Playboy is finalising 


magazine into the video 
medium. Others might impute 
more pragmatic moves. After 
all, the end result would be to 
distance toe company further 
from a depressed jotT over- 
subscribed market sector (the 
X-rated industry), to {nation it 
in a far less competitive^ U 
rather nebulous, niche. - 
The licensing division, also 
established by Hefner In 1982, 
switched long ago from the 
novelty items on which the 
universally - recognised rabbit 
and bow tie logo used typically 
to appear, to a broader-based 
fashion/merchandise mix. “It 
really speaks for toe asset value 
of the logo,” says Hefner. “.It 
is a very high margin business.” 
The- division's origins date 


from 1958, when a. mail-order 
business was set up to seH pro- 
ducts calculated to boost sales 
of toe fledgting magazine The 
product range began to broaden 
in the 1990 b when sales started 
in toe then thriving Playboy 
chibs. 

licensees were recruited in 
toe mid-1970s when it was 
realised that it could not distri- 
bute sales itself oar continue to 
rely on mail-order sales alone, 
the preferred shopping method 
of only a minority of consumers. 

extended Its roster 
to 58 licensees which manufac- 
ture and market apparel, in- 
cluding jeans, swimsuits, sports- 
wear and underwear, as wed as 
other iteme like luggage and 
bedUnen around the world. _ 
The major criterion in asses- 
sing toe desirability of new 
licensing agreements is the 
quality of toe product which 
will bear the logo. The company 
has benefited in Hefner’s view, 
“from cancelling some licen- 
sing arrangements.” Despite this 
fastidiousness, the business 
looks weU set for further 
growth, both domestically and 
overseas. " Ap.Qf last year, we 
sell more underwear than 
Calvin Klein,” Hefner says. “I 
get a kick out of that” 

While toe company recog- 


nises that tiie US Industry Is 
somewhat om sa t u rat ed, St, 
feels that its market niche at 
toe centra of toe mass market 
arena — most products are tar- 
geted at adults aged 18-34 and 
outlets selling them include 
Sears, J. G. Penney end Mont- 
gomery Ward— together . with 
its household name and its 
reputation for quality- will 
permit continued growth. 

Most expect the dual spear- 
head formed by the licensing 
and video divisions to spur toe 
company to operational profita- 
bility in the very near future, 
even if the latter is still held 
back by persistent problems 
with the Playboy Cable TV 
channel. 

The company has never really 
succeeded In concocting a pro- 
duct mix which appeals to 
wide enough range of viewers. 
While it is attempting to get 
closer to Its audience by taking 
toe marketing function in- 
house and starting to produce 
a monthly programme guide, a 
convincing' improvement has 
yet to be achieved. 

As it is, toe company was 
marginally profitable at the net 
level in each of its first two 
fiscal 1987 quarters, thanks to 
various items of non-operating 
income Including tbe safe of the 
lossmaking “ Games ” magazine. 

However, analysts generally 
assume that the sluggish pub- 
lishing division will continue to 
put a brake on the recovery. 
Though Playboy remains 
America’s best-selling men’s 
magazine, circulation did 
steadily from a peak 7.2m In 
1972. Of more Immediate con- 
cern, is toe precipitous decline 
in advertising 

Hefner says that Playboy is 
addressing the problem, by re- 
shuffling management and 
stepping up toe number of 
regional iasues— a move facili- 
tated by tbe magazine's switch 
to a more "flexible binding pro- 
cess last October. As a result, 
some advertisers are returning 
to toe fold, snch as Japanese 
consumer electronics manufac- 
turers. Hefner says toe April 
1987 issue will be the biggest in 
ad pages since December 
198S. 

If the share price is a fair 
reflection, Hefner's strategy has 
certainly put Playboy in 
recovery mode. In one recent 
week, it toot up no less than 29 
per cent, fuelling inevitable 
speculation that the magazine’s 
founder, chairman and majority 
shareholder, Hugh Hefner, 
ostensibly out to grass writing 
his autobiography in the com- 
pany's CnUfnmtq wmwirfrtw , 
might be plotting to take the 
company private. 

Analysts however discount 
thin possibility, pointing to 
“ prohibitively adverse tax con- 
sequences” if Hefner were to 
mount a leveraged buyout 


Business ethics 


‘We need to strengthen 
each other’s resolve’ 


“ALL THE perfumes of Arabia 
will not sweeten, this little 
hand,’* declaimed Sir Geoffrey 
Chandler, summoning up lady 
Macbeth in support of his con- 
tention that a company that 
acquires a r e putati on for shady 
practice wQl find it difficult to 
shake it off. 

TTia audience needed little 
convincing. With the BoesSy 
and Guinness affairs still domi- 
nating the headlines, there was 
an air of urgency at the first 
major conference of Britain's 
Institute of Business Ethics 
which took place in London 
last week. 

Sir Geoffrey, director of 
Industry Year and its successor. 
Industry Mattery said that busi- 
ness had to earn for itself the 
bind of respect granted auto- 
matically to medicine, 

UT l fl T1 

“You win frequently hear 
senior industrialists and busi- 
nessmen and women saying ' we 
are In business to make profits.’ 
Well, so are burglars,” he said. 
While businesses do have to 
make profits, they have a wider 
social responsibilfty, too. “We 
need to avoid the bad driving 
out toe good. Everyone in 
industry suffers from toe 
G uinness affair.” 

The institute's riniiinwiin, 
Nevffle Cooper, took up toe 
theme. “There are plenty of 
crooks around. But for every 
outrageous crook who brings 
the City Into disrepute, there 
are SO, 50, 100 people around 
who don't like it We need to 
strengthen each other’s 
resolve.” 

The Institute was launched 
last October, toe day after Big 
ng. Tbe impetus came from 
members of toe 
Association of Business Execu- 
tives (CAKE). OABE has been 
in existence for many years, but 
its members felt the new insti- 
tute needed a wider social base, 
lectingtoe pluralist nature of 
modern Britain and its business 
community. Hie Chief Rabbi, 
Sir Immanuel Jakobovits, and 
the imam of toe Central 
London Mosque, Sheikh Gamal 
If. A. Solaiman. have both 
endorsed toe aims of the 
institute. 

These Include toe promotion 
of “ toe positive aspects of 
wealth creation and toe ethical 
principles which must underlie 


BY MICHAEL SKAPINKER 

them.” Activities will include 
surveys, research and publica- 
tions. 

Last week’s conference de- 
bated whether to draft a Code 
of Business Ethics. CABE drew 
up such a code about 15 years 
ago, but toe consensus of the 
conference was that it was out- 
dated. In particular, it did not 
pay sufficient attention to toe 
dilemmas of doing business 
abroad. 

Some of these dilemmas were 
high lighted in a controversial 
speech by Viscount Caldecote, 

chairman of Investors in Indus- 


“ I have not heard the 
word ‘ exploitation * 
today. But what about 
the multinationals? 
Because we in the UK 
want things as cheaply 
as possible, other people 
have to suffer abroad ” 
... but moral dilemmas 
can occur closer to 
home, too 


tty. What do yon do, he asked, 
in those countries where 
“special commissions" are de- 
manded in return for contracts? 
If you refuse to pay, the loss 
of business might 1 mean redun- 
dancies for your workers back 
home. “Are you going to be 
happy to dose a factory because 
you are so squeamish as not to 
follow toe practice in that 
country?” 

This upset some of the dele- 
gates. “You seem to be sug- 
gesting that you can have 
principles which you then com- 
promise when you are in an 
overseas country,” said one. 

“I do not think it is that 
easy,” Caldecote replied. “ Con- 
filcts of loyalty are difficult 
things. If you are selling 
sewing machines or something; 
and you are trying to sell 10 
of those, it probably does not 
matter very much. But if you 


get a major contract tor a power 
station, yon will give people 
jobs for years. If you do not 
get it you will begin the pro- 
cess of throwing 500 people out 
of their jobs. That is something 
you must settle with your 
conscience." 

There are principles to be 
aonlied in inu ^ situations, he 
said. One is that you never use 
snch payments to persuade 
people to buy something that 
they do not need. The other is 
that you never make additional 
payments in countries where 
that is not the norm. 

One delegate described this 
sort of thinking as “the road 
to hell.” Other dilemmas were 
raised too. Whether or not to 
do business in South Africa 
inevitably came up. Another 
delegate appeared to question 
toe ethics of doing business 
overseas at alL “I have not 
heard the word ’exploitation’ 
today. But what about the 
multinationals? Because we in 
this country want things as 
cheaply as possible, other 
people have to suffer abroad,” 
he said. 

Some pointed out that moral 
dilemmas can occur closer to 
home, too. What should busi- 
nesses, particularly small busi- 
nesses, do about employees and 
contractors who demand pay- 
ment in cash, they asked. 

Neville Cooper, toe institute's 
chairman, told the conference 
that none of these problems 
would be solved “by getting a 
code on paper, however good.” 
Each company would have to 
come up with a code of ethics 
to deal with its own dncum- 
stances. The institute could 
conduct research into best 
practice in tills area and 
examine toe codes which already 
exist 

tor Geoffrey Chandler added 
that It was not enough for such 
codes to be drawn up. There 
had to be the will to them 
part of toe organisation's 
culture. “You cannot tack it 
on like a bad cadenza,” he said. 

But unless companies 
addressed the ethics issue, they 
would find it increasingly dif- 
ficult to attract young recruits. 
His work with Industry Year 
had taught him that “younger 
people have an idealism that no 
generation has had before." 




2 \ \ X 






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AOQA2 


In Great Britain: 

EMS-GRILON (UK)’ lid 

AstonfieJds Industrial - Estate 

Drummond Rbad,GB-Stafibrd-5T163EL 
Telephone 0785-59 121, Telex 36 254 
Fax 0785-21 30 68 

£ms 

• BvJGINEERING PLASTICS 
SYNTHETIC FIBRES 
ENGINEERING 


INVITATION 


to attend thft 


addressed to Shareholders and Holders of Participation Cer tifica te s 
(in the folkwring ..Raiffenwr-Vermogensanteile'') 


ORDINARY GENERAL MEETING 
of Genosawuchaftliche ZsntraBmnk AG t 


to be held on Tuesday, April 28th, 1987 at 10.30 a.m. In 1010 Vienna, Schauftergasse 6, ^Jugendstikaaf”. 

AGENDA 

1/ Presentation of the established financial accounts and presentation of the business report of the Board of Management 
regarding the business year 1986 together with the report of the Supervisory Board. 

2/ Resolution regarding distribution of net profit. 

3/ Resolution regarding the exoneration of the Members of the Board of Management and of the Supervisory Board. 

4/ Resolution regarding reimbursement of the Members of the Supervisory Board. 

5/ Election of the auditors for the business year 1987. 

6/ Amendment to the Articles of Association in paragraphs 4, 5, 9, 11, 14, 23 and 24. 

7/ General. 

Attendance is granted only against presentation of certificates of deposit evidencing the deposit of shares or interim 
certificates with an Austrian public notary or with an Austrian or foreign bank. The deposit has to be effected not later 
than April 22nd, 1987 (section 17 of the Articles of Association). 

The voting power of the shareholders corresponds to the nominal value of the shares. 

In case votes are exercised by proxy a written authorization is requested. This authorization will be retained by the bank. 

Holders of MRaiffeisen-Vermfigens&ntBile" are entitled to attend the General Meeting. Their right of attendance has to be 
Justified in the same way as the corresponding right of shareholders (e.g. by analogous application of section 17 of the 
Articles of Association). 

THE BOARD OF MANAGEMENT 

INVITATION 

add ressed to toe Holders of „Raiffeh*teVermdgensan 1 rik M 


to attend 


A BRIEFING 


concerning the financial s ta t em ents 1986. This briefing will be held on Tuesday, April 28th, 1987 at 930 am in 1010 
Vienna, Harrengasse 1, 2nd Floor, Conference Room. 

Holders of uRaiffalsen-Vermfigensanteile” are authorized to attend this briefing; they have to justify their ’right of 
attendance by analogous application of section 17 of the Articles of Association. 


•THE BOARD OF MANAGEMENT 


Vienna, March 27th, 1987 


* GZB-VIENNA. 



Financial Times Monday March 


WORLD MARKETS 


mTNrHmiST INFORMATION SERVICE 



Jointly compiled by the Financial Times, Goldman, Sachs & Co., and Wood Mackenzie & Co. 
Ltd., in conjunction with the Institute of Actuaries and the Faculty of Actuaries 


FT- ACTUARIES 
WORLD INDICES 


.Dac 31.1886-100 


HATHHUL AMD 
REGIONAL MARKETS 

Figures In parentheses 
sho w num ber at Stocks 
per grouping 

Australia (94) ■■ 

Austria (16) 

Belgium (47) 

Canada 032) 

Denmark (39) 

France 02U._„ „ 

West Germany (99) - 

Hong Kong (45) 

Ireland Q4) 

Italy (76) 

Japan (458) .... 

Malaysia (35)- 

Mexico (141 _ 

Netherfand (38) 

New Zealand (27) 

Norway 125) 

Singapore (27) — 

South Africa <&D 

Spain (43) 

Sweden (33) 

Switzerland (52) — — 

United Kingdom (34Z) 

USA (580) 

Europe (945) 

Pacific Basin (686) 

Euro— Pacific (1631) - 

North America (71 ? ) 

World Ex. US 0838) 

WorM Ex. UK (2076) 

World Ex. So. Af. (2357)——— 
Worid Ex. Japan Q960> 

. The World Index (2418) 


6*» varies: Occ 32. 1W- 200 
Ossrida. Tl* Financial Times, Critaa. 
Late* Mces rot aoBiUe tar thfa edMo 


THURSDAY MARCH 26 1907 


DALLAS INDEX 


US 

Da/s 

Defter 

Change 

Index 

% 

2ZL24 

•BM 

■*0.9 

-02 

11732 

-03 

13125 

-04 

115.00 

+1.7 

120.79 

+03 

8943 

+21 

22020 

-L7 

13068 

+oi 

10236 

-03 

12780 

+05 

mu 

-0.4 

142.91 

-24 

11269 

+06 

962b 

-08 

126.90 

-01 

12231 

+02 

16437 

+12 

11004 

-01 

114.75 

+02 

96u68 

-03 

13234 

-03 

123.77 

+02 

11446 

i9f.rw 

121.92 

+02 

+04 

+03 

12427 

+01 

12280 

403 

12230 

+03 

122.92 

+03 

12099 

12308 

+01 

+03 


Local 

Gross 



Cwreucy 

W». 

1986B7 

198667 

Index 

Yield 

High 

Urn 

115.92 

2.97 

12124 

7018 

88.72 

L75 

K7L62 

7060 

11027 

417 

118.92 

53.75 

12626 

220 

13435 

8638 

10737 

232 

124J.0 

8787 

11525 

226 

120.79 

57.72 

84.96 

2.12 

10033 

74,48 

13040 

287 

11471 

6287 

12612 

337 

13068 

6233 

9980 

132 

10030 

4687 

12045 

034 

12780 

49.46 

12924 

2.94 

13538 

6687 

17320 

1J7 

146.47 

4380 

10616 

418 

11331 

74J4 

9035 

300 

30039 

4737 

11830 

194 

12789 

9082 

12096 

388 

12251 

55.94 

107.40 

331 

16437 

6986 

10738 

380 

12131 

4580 

10830 

222 

114.75 

6335 

9130 

185 

10486 

6981 

322.17 

147 

13388 

7539 

123.77 

2.93 

12486 

85.46 

10732 

11984 

290 

070 

11437 

12685 

6936 

«n.TQ 

114.91 

133 

121.92 

5045 

123-91 

289 

12460 

8581 

12530 

138 

12280 

6002 

11828 

197 

12230 

6985 

11069 

210 

12292 

69.95 

11739 

11062 

290 

211 

12188 

lOTifl 

7987 

7014 


WORLD INDEX 




m 




SzS5r= 


90- Jh 


Of f- WORLD 
I* : flNd.UK 


Sachs 4 Co.' 


I Mtokradt & Co. Ud. 1S87 


80 -f .J 


70 -:N. 

s EUROPE and 

: pacific 


1986 1987 


T 1 T^ ^Tr—rtTy 



sea 






r »r 


EUROPEAN OPTIONS EXCHANGE 


BASE LENDING RATES 


701 25 

737 U 

IM 440 

30 2.20 

3 050 



90 1 

20 4 JO 

221 7 






ASM Bank 10 

ttn&Ccnpapy 10 

MfMAnbBkLtd 10 

Allied Oaobar&Ca 10 

ABMiridiBadi 10 

American Exp. Bfc 10 

AmBartk 10 

Henry AnStiadrr- 10 

ANZ Baeking Gnxrp 10 
Associate £a> Cm— 11 

Aeftority&CoLtd 10a 

Banccde Bilbao. 10 

Barit Kapoalm 10 

BsAlewni(UK) 10 

Ba*CrH»6Canm_ ID 

fiankafCypv-— 10 

Barit odtelard 10 

Banktf Jiafii 10 

UarriofSartfeixl 10 

Brape Beige Ltd 10 

Barclays Barit 10 

BendmortTsiLld , 10 

Beneficial Trust Ltd— life 

SsImrBaskAG 10 

BrH.Bk.ef Mid. Ea*_ 10 

&u«n Stagey 10 

BoskesKstgageTsL. 10 

CLBahNederM 10 

CanadaPenmet 10 

CayzerUd ... 10 


► Cfcartertmsc Barit — 10 

Chink NA 10 

Cittarii Safes T12.C 

OtyltettartsBa* — 10 

Dydesdale Barit 10 

Cam.Bk.N.Eari 10 

CosalttMCred 10 

CocpendheBBfc *10 

Cyprus PopxIarBk 10 

OacaLnme 10 

ET.Tna 12 

Equator 1 ! TaCppk 10 

Eater Trat Ltd HP? 

Franca 4 Get Sec — 10 

FhstNsLFn.Cap life 

Find KiL Sec. Ud life 

i Robert Flaring ACO— 10 
RriiertFtaKr&Ptri— life 
Grinriays Barit (10 

i Crimes tUU 10 

HFC Trad & Savings ID 

> HanbraBmi 10 

Hwratte&G«x.Tsl 10 

iHdlSaswri J10 

C. Home A Co 10 

Hongkong & Sbaagfc’ 10 

Uoyds Barit 10 

MaseWestpacUd. 10 

lle^ni&SasLtt— 10 
Midairi Barit 10 


aHragnberieh 10 

UotCredhCqrp.UtL_ lOfe 

KatBLofKnnB 10 

KOtariOrotorit 10 

(foVestrioster 10 

Hordern Bank Lid 10 

t fernic* Gen. Trust 10 

PKnHs-iniinnQ^ iofe 
PrawririTnatUri — 12 
ILflflMiSns 10 

Ruxbkrghe G'rantee lOfe 
ftojal Bk of Saxla*d_ 10 

JfealTraRBa* 10 

fririflilClmtiwf — 10 
Tnstee Samp Brit — 10 
UOT Mon** Exp.— *1225 
UtttedBkriKnait— 10 
IMtedttinUBa*— 10 

(MylhstPLC 9fe 

WestpK B 1 clang tap 10 
WtieuarLrito—. lOfe 

YmkridreBank 10 

• Meteen of me Accepting 
Hotses Co mm i t t ee . -7-day 
deposits 535%. Santee 003%. 
Top Ttar— £2300+ at 3 months’ 
notice 9.38%. At call when 
£10,0004- mrie deponed. 
(Call denote ELD00 wd aver 
5T»% <pm 1 Mortswe base rate. 
{Demand fern* 535%. 
Hurte* ia,gt. 




UNILEVER C 
UNILEVER P 


TOTAL VOLUME IN CONTRACTS: 48JU 

AcAsk B~Bld 


FT CROSSWORD PUZZLE No. 6,290 


TANTALUS 


NOTICE Ny 

to the holders of the outstanefing C50.000.000 Mortgage Backed 
Floating Rate Notes 2010 
of 

Mortgage Intermediary Note Issuer (No. 1) Amsterdam B.V. 
(with its statutory seat in Amsterdam) 

(the “Notes - and the “Company" respectively) 

NOTICE IS HEREBY GIVEN to the hokters of the Notes that pursuant to an 
agreement dated 6ui March. 1967. BankAmerica Finance limited ("SAFIN'), 
Sormerty a whouy-awned subsidiary ot Bank of America National Trust and 
Savings Association ("BA"), has been sold to a wholly-owned subsidiary of 
Bank ol Ireland (“Bn. Both BA and BAFiN have, in a Deed dated 7th January. 
1985 (the "Deed"), undertaken certain obligations in favour ol the Company. 
the benefit of wrxch has been assiged to The Law Debenture Trust Corporation 
pic.. as trustee for the holders ol the Notes (Die Trustee"), as security lor the 
NotBs. The sateol BAFIN required ine consent of theTrustee. which iha Trustee 
gave, subject to tne condition that the ougations aider the Dead of both BA 
and BAFIN in favour of ihe Company remained m effect foiowxig the sale and 
that Bt undertook obligations in favour ol the Company cone3pondinc to certain 
ol those of BA, the benefit ot which rrouti then be assigned Id the Trustee as 
security lor the Notes. Accordingly. Bl has. in a Supplemental Deed dated 6ih 
March. 1987 (the 'Supplemental Deed’), undertaken certain obligations m 
favour o( the Company and the benefit of those obtagaiions has been assigned 
to the Trustee as aforesaid. The obligations wider the Deed of BA gnd BAFIN m 
(avoir at me Company remain in effect, except insofar as necessary to permit 
the sate ol BAFIN. The Company has undertaken in the Supplemental Deed, 
upon reoeipt of notioe from BAF?N expraw on any fntemst Rayment Oate (as 
defined m the Conditions endorsed on the Notes) wing alter Febnaiy 1990. to 
reassign to BAFIN ihe benelil of me mortgage loans comprised in the security 
lor the Notes ai their principal amount and to apply the proceeds wi a 
redemption ot all of the Notes outstanding on such Interest Payment Date m 
accordance with the oromsons ol Condition 6(c) endorsed on the Notes. 
Coptos ot the Deed and the Supplemental Deed are avertable lor inspection at 
the registered office for the time being of the Trustee being af (he date hereof 
Estates House. 66 Gresham Street. London EC2V 7HX and at the specified 
oHices of the frying Agents set out m the Conditions endorsed on the Notes. 


Uri W (c) (8) 




(Bl -226 6066 

d u OJA 
■ mo 


♦5a rmo 

ooo 

*U OCO 
+4J L57 
-4X2 Affl 
+0.? 0.77 
♦02 tk77 


(0-3746801 
. 44U Lab 

SDH — Ui 
27.g +03 IM 

♦TU 

E H 

- 35 

__ 005 

— i 160 


10-5345544 

03« 

•+63 U9 
♦53 u* 


♦iri ua 
+5i Act 
♦LM 2AB 

♦53 aw 
♦ill 20i 





hr 1 I 


aa 3‘ 


Da tod 30th March, 1887 


Uortgage Intermediary Note 
Issuer fVa 1) 
Amstorriamav. 




KLE1NWORT BENSON FINANCE B.V. 


US $150,000,000 Floating Hate Notes 1996 

(of which US $100,000000 have been 
issued as the Initial Tranche) 
of 

KLEINWORT, BENSON. LONSDALE pic 

(which was substituted for Kleinwort Benson Finance BM 
as the principal debtor on 15th March 1985) 

For the six months 30th March 1987 to 30th September 1987, 
the Notes will carry a Rate of Interest of 6*Vie per cent, 
per annum with a Coupon Amount of US $341.87 

Chemical Baak International Limited 

Agent Bank 


♦4L* noa 
+17 US 
♦Lb 274 
+LO 2.74 


01-6589002 

1 03 
OM 
45 
10 
4J 
27 

I? 

ai 

an 

OB 

OA 

D 

27 


»T ' v*.y 


argil- with 


i fl'i JffVi 1 ! ITT 


FORD CREDIT CANADA LIMITED 

50,000,000 

Guaranteed Floating Hate Notes due 1988 

-Private Placement- 

in accordance with the provisions of ihe Notes notice Is hereby 
given that tor the six mortfhs^period from March 24, 1987 to 
Sep te mber 24. 1987 the Notes w» carry an Merest rale of 
B'Vi.% pa- annum with a coupon amount Of U.S.S 854.51. 

' Frankfurt/Main, March 1987 

COMMERZBANK 







-4N 4S3 
♦0-3 LSI 

+4-3 

♦IS 021 

♦S3 075 

+M OJ2 
♦M 032 

•flU OJA 

♦OJb ObO 
+22 054 

♦27 054 

♦04 O^ 
+OJ 078 

OM 

046 

DJB 

QJ6 


m-swsm 

1 047 

076 
1 LSI 


BM03BUI 
- J aes 


„ J 4.72 
-J 240 
— 1 24b 


01-2484400 

LOJ 

-I) OSH 
340 


iV£ 
























































































































































































































































































































































































































































































II 


financial Times Monday March 


INSURANCES— Continued 


LONDON SHARE SERVICE 



d Bfc 55 Lonrtn 

m Grenfell 35 RnTZIne 

A celectiiin of Options traded fc gtnen on the 
London Stack Enftnyi Report Page. 


t 
































































































































































• "" •• •. .- ij-Q? v.wi*»£- A - ; h -*”'■' '' ' '• ;• ,._ • 

Financial Times Monday March 30 X98T, 


DIARY DATES 


Trade fairs and exhibitions : UK 


April 29 

British International Antiques 
Fair (021-780 4171} 

NEC. Birmingham 

April 6 

International Construction 
Equipment Public Works and 
Municipal Services Exhibition 
and Conference (01-037 2400) 
NEC. Birmingham 

April 16-18 

International Electro-Optics and 
Laser Exhibition (01-940 8777) 
Tokyo 

April 22-28 

International Computer & Office 
Automation Exhibitors — XZECO 
(01-439 0501) Seoul 

April 25-30 

International Wire mid Cable 
Production and Wire Products 
Exhibition— WIRE ASIA <06838 
7755) Betting 

April 60 

Better Made in Britain 5: Cloth- 
ing, Knitwear and Footwear; 6: 
Building Components and DIY 
(01-211 7153) 

Remington Exhibition Centre 
April 14-16 

International Trenchless Con- 
strnction for Utilities— Con- 
ference and Exhibition (0923 
778311) 

Kensington Exhibition Centre 
April 14-16 

International Book Fair (01-940 
6065) Olympia 


April 17-18 

Cash and Carry Fashion Fair 
(01-727 1929) 

Kensington Town Hall 
April 2446 

Atari Computer Show (061-456 
8835) Novotel 

April 26-Hay 4 

London International Furniture 
Show (01-885 1200) Earls Court 

April 26-28 

International Confect ionery 

Market Exhibition — INTER- 
CONFEX (01-661 4900) 

NEC. Birmingham 

April 27-30 

Audio Visual Exhibition (01488 

7788) 

Wembley Conference Centre 
April 2946 

London Engineering Design 
Show (0895 58431) 

Sandown Exhibition Cadre , 

May L13 

Northern Ideal Home Exhibi- 
tion (0602 501202) 

G-mex Centre, Manchester 
May 2-4 

Photographic Exhibition (01- 
661 4900) 

NEC, Birmingham 

May 7-9 

Scottish Freight Transport and 
Distribution Exhibition Con- 
ference (01-642 7688) 

Avfemore Centre 


TODAY 

Oxuunms: Second readings 
of tiie Landlord and Tenant 
(No 2) Bill the Fire and Safety 
of Places of Sport Bil), and the 
Pilotage Bill- 

Lords: Billiards (Abolition 
of Restrictions) BiH, third read- 
ing. Abolition of Domestic 
Bates (Scotland) Bill, commit- 
tee. 

Select committees: Treasury 
and Qril Service — subject 
the Budget Witness: Rt Hon 
Nigel Lawson, Chancellor of 
the Exchequer (Room 8, 2J5 
pm). Public Accounts — 
subject: individual training in 


Overseas 


April 1-4 May 69 

Wire Tokyo "87 (07072 75641) International Footwear and 
Tokyo Leather Goods Show (01-370 
April 80 _ , , _ 0765) Taipei 

International Chemical ana 

Petrochemical Industry Exhibl- „ - A 
to (OljffiB 1851) Bdto Cotot Floor 

interactional Toy Fair— SPIEL 

(01-977 4551) Vienna 0343) Frankfort 

Business and Management Conferences 


March 21 


April 8-9 


NEDC/FT Conferences: Enter- FT Owtewaw JSSg a, S?LS 
prise, success and jobs— company the M 


success (01-621 1355). 

Queen Ellreheth n^forence Apr ^10 

April 1 


five years (01-621 1355) 

Hotel Inter-Continental, Wl 


i ^ Institute for International 

» anas srs&sfws^s: 


The 1887 Budget (01-636 8784) 
Park Court Hotel, W2 

April 1 

idingmtm Seminars: Merger 

accounting— financial reporting 
issues (01-242 4111) 

Cavendish Conference Centre, 
Wl 

April 1 


regulatory framework (01-434 
0301) Park lane Hotel, Wl 
April 9-10 

Frost and Sullivan: Project 

management for data processing 
operations (01-730 3438) 

Sullivan House, SW1 
April 9 

CBL EFTPOS— the payment 


The Association of Corporate card revolution (01-379 7400) 


Treasurers: Modern financial 
instruments — their practical use April 11 
(01-631 1991) Hilton Hotel, Wl The a 


Centre Point. WC1 


(01-631 1991) Hilton Hotel, Wl The Chartered Institute of 

. „ « . Management Accountants: Going 

tSTbS*! Life Conference- for growth (0234 272222) 
action with communities (01-636 . - Northampton 

4fuu» April 29-24 

Wd Jlgtoltol Crflem S«rri«: 


Cirenc ester 


April 6 


UK Budget tax (0423 879437) 
Harrogate 


International Business Commnnl- April 24 

cations: 6th annual television CBI: Making and using sales 

planning and buying seminar forecasts (01-379 7400) 

(02430 4080) Marriott Hofei, W8 Centre Point, Wd 

Anyone urishing to attend any of the above events is advised to 
telephone the organisers to ensure that there has been no change 
In the details published. 


TODAY 

COMPANY MEETINGS— 

Chaster Waterworks. ,Mwa Howt 45. 

FmISTSiwi 25* i» Treat as. c««- 

28 

Soon. EC. 2JD 
BOARD MEETINGS—* 


Ararat 

iipii 

Blackwood Hodgu 
Boasted „ . 

Britt* (I Svpboo INI 
CCA Galleries 
Campari IlDI 
Dwck Or# 

KWC* 

Ena, Ugbtioe . 

Em and Can Ire* 

Executor Clothe* 

Halstead awM) 

Mandera 

Richardson* Wntwtt 
Roara Forttouri Coined* 

Store* En 
BeUrliust 

old Court fatal Bwuw 
IfDO 

DIVIDEND A INTEREST PAYMENTS— 
Bank of Montreal FI to (tote Ntm 1BS4 
1143J6 

Banker, Trust Overseas Finance NV Gtd 
Fits Rate Soft Nt* 1994 11TJ4 

Barton 6 DC PI 2.1 b 

Chester tvitamu 4.2pe 2.1o. S.1BacPf 
I 1 .57 So. S.85pcRedPf 1SU4S 1.925s 

Kletnwort Benson Finance BV Gtti Fits 
Rata Nta 1988 S31S.1T 
Microsystems 1.5p 

. Milk Market] on Board Fits Rata Nt* 
£143LS8 

St Davids lev Tit 2. So 
Scottish Aorfc See lOtoPcDO IBBD-Bt 
a upe 

Simmer and Jack Mint* 2Scta 
TSB 1 .OBSo 

Treasury 2pcl L 198 f PC 
Well* largo Fits Rat* Sub Can Nt* 1987 
SI 69.05 

Yeoman lav T*t Ua 


COMPANY MEETINGS — 

Aaronson Bra*. Ssi-ov Hotel. WC 12.00 
BirmKJ Qua least, Albany Hotel. Birming- 
ham, 12.00 

CreKant Jaoen In v Trust. 4. MaMIta 
Craroa nt Edinburgh, 12-30 
General Cons lew Trait. 9 Upper Mom 
Street SW. 12-30 _ 

Letfa in* Trust. S Fimbufy Square. EC. 

McAlpfne UHtnO. AD hots Wafl Hotel. 
Whitchurch Road. Pester. 12.15 
New Tokyo lev Treat, 4 MetvUio Crescent. 
Edinburgh. 12.15 

Teodrlog Honored Water wor k* . I mUtut a 
of Directors, 116 Pall MallTsW. 12.00 
Wrexham and Cart D«nb water. 21 lew 
ton Street. Wrexbam. 2.00 
BOARD MEETINGS— 


Angle- la* Mi Plantations 
AnxHectrlc 

■alllie GMurti Technology 
Stockier* 

BPCC 

Bunt! 

Christies Intnl 
combd English stored 
Debtor 

Evans Kalshow 
Gaskell Broad loom 

kv"*- m “» 

Jon Inva 




East Daggafontein Mines Limited 


ip 


(lW—*llffa010C37h)Q 

B aap imllnSieH miS d c e H i i v diMha l 


Group interim report 

31 DecenDec 1968 

The i* actor s se n na to Wwwng u 
monlhe ended 31 Docenfcer 1988. 


In te rnet received 
Other 


1 1 W*S *or to Mtfcg 


Iteteondg 




We know when lo shout 

(Wb also know when a quiet chat 
would be more productive) 

F0R1HE HGHT TONE OF VOICE 

— — „ Contact Edwin Proffieroe 


EJR 


U|JL TEAM PUBLIC RELATIONS LTD 

' Ludgate House 107-111 Fleet Street London EC4A 2A& 
Telephone: 01-583 2001 


1. Oi 19 December 1986 tha company advised Bs Nmhoiden dot to ten* yg* and 
bad been cfamged horn 31 Daoarabarto 31 March, to cotodde wttfi to ItaencM yrer 
end Of Eest ftond Gold and Uranium Company limited [Ergot. The rtStoti report, 
aanringto ERean months aMfeg 31 March 1BB7 wfl be maied to d iam li uUrts to 
May 1807.. 

2. Ito Income ton to benhnent of to BTWUJ's simaa liana by Ergo las yet 
eOH On sn em d. Btoaecit— son auitoadon by Ffrnd &ttreion*a & qtio mOo e United 
■etaidnued, rasuMng in m mpected gmie loss for da tweNa months anted 
31 December 1906. Ibera vAbaiaMkr lo» forto Wteea months endngsi Merch 
1887. 

3. Cgra toto fnBOftoDqjgBfaraatoptsrtbyBybtopmoiese. WtMfloldpwducdon 
to capeand to to s econd guener 1987 with to to* uu eind m on two an e w at 
rased Otoscsy by to rod erf IBS7. 

OnhahMoftobaatf Raatoteradotoa Thm sl sr s eae u tto e 

AH Lada 19 Gfrton Sheet WSsmiMRectenn 

Parfctown.2183 (SAJUmtod 

. , BthHoor 

ClfosC MtowB BSPraskJrtd Street 

“**»■ , Jcfanri09burg,2an 

26 Mach 1^87 


Decade of research lost 


by Jim Gallagher 

EVEMNBSVWDMD23&B7 

BULLIONS of pounds 
worth of 

could have been destroyed 

in last nigfafs huge blaze at 

the the Milton Keynes 
headquarters of the Open 

^f&^to^lclBls we retoda y 
trying to count the 
. Sr cost ot tho ttre wfatoh 


swept through the epmp»n«; 
suite In the technology »c- 

^S^mace to the building and 
equipment was estimated at 
£ 500.000 but the toes of up i to 
10 years’ work stored to the 
computer wus regarded as » 

far greater Wow. 

Academics today could not 
nut t price on it, but SO 
2uU-tlme researchers were 
woriclng on contracts worth 


millions of pounds. They in- 
cluded deals with British, 
industry lo monitor and 
analyse the activity of satell- 
ites in apece. 

Geoff Peters, the dean of 

technology, said: “The effect 

on our res ear c h work is 
devastating. Some peoples 
careers are affected and a lot 
of work on research contracts 
has been , lost and can’t be 
replaced.” 


Parliament 


.v ; ' 


the armed services. Witness: 
Sir OJve Weiitirfore, MoD 
(Room 16, 4.45 pm). 

TOHOTROW 

Commons: Progress oi 

remaining stages of the 
Criminal Justice BuL 

Lords: Abolition of Domestic 
Batw (Scotland) Bill, commit- 
tee. Motions on legal aid regu- 
lations. 

Select committees: Educa- 

tion Science and Arts — sub- 
ject: special educational needs. 
Witnesses: Society of Education 
Officers; National Association 
of Advisory Officers in Special 
Education (Room 15, 10.40 am). 


Transport — subject: decline in 
the UK registered merchant 
fleet Witnesses: BOSVA; 

Shell UK; BP (Room 17. 4.15 
pm). Parliamentary Commis- 
sioner for Administration — 
subject: reports of the PCA 
for 1986. Witnesses: The Lord 
ChadceSlor and officials from 
his department (Room 8, 
4«H> pm). Committee on a pri- 
vate Bfll — Bexley London 
Borough Council (Room 6. U 
am). 

WEDNESDAY 

Commons: Completion of the 
■remaining stages of the 
Criminal Justice BiB. 


Lords: Debate on the state 
of the National Health Service. 
Unstarred Question on the need 
for major road works between 
Hastings and Hythe. 

Select committees: Welsh 

Affairs — Subject: the cona- 
tion and repair of privately- 
owned housing. Witnesses: 
FemdaJe Home improvement 
Centre; Newport Borough 
Coun cil. (Room 18. 10.30 am). 
Trade and industry — sub ject 
motor components industry. 
Witnesses: BBA Group: Pilfc- 
ington Glass. (Room 15, 10-45 
am). Public Acsconnts— subject: 
Trustee Savings Bank rights of 
Ownership. Witness: Sir -Peter 


Middleton, Treasury (Room 16. 
4.15 pm). Transport — 
decline in the UK registered 
merchant fleet. Witnesses: Mr 
G. Bormdck; Mr Michael Grey 
(Room 17. 405 pan). . Joint 
Committee Consolidations KJs 

—subject: Housing (Scqtiand) 

BilL Witnesses: Mr W, C. 
Galbraith, draftsman, Scottish 
Law Commission; Mr J. A - 
Stewart fonneriy diviripaM 
solicitor, Scottish Office; MrJ. 
c B. Martin, Assistant Secre- 
tary, Scottish Development 
Department (Room 4, 4.45 pro. 
Committee on Private 
/Bexley London Borough Bill 
(Room 6, 10^0 am). 


Finance 


The fW fowfe« ds a record of the principal bustoess nl 
Bromitoi engagementa daring the week. The board m eetings are 
mntijy to? me purpose of considering dividends and official 
tadfoatfone ore not always available wbetber dividends concerned 
ore interims or finate. The sabdivieions shown below are based 
mainly on last year’s timetable. 


B u^ awood ‘ B BUacDtj 1B6V-94 3 m>« 199S57 3pc «<*»e 


uu-g s sut 


Loodoa and Edfabarob Ike 
London and Scotttek Manna OU 
Martin (AUctO 

Qwkdc J-J 

scottim Hcrttabw Tfel 
San lor Eos 

VflHaoo fOaooofhO 
W o rtuto Grp 

AB-g2"?ro-. 

2235^ « 

DIVIDEND A INTEREST PAYMENTS— 
AE BpcLn 1 BBS-96 _*PC_ 

525 “ w "*** 

Utor and Akncaadar Sarvtea*. 2Bct*. 

Alliance Pr oo aity TtoClNOb 1BBB-B1 TV» 
Allied London Proocvtica atmem IBM 

4LpC 

Allled-Lyons 7pcReOb 19B2-B7 sijpc 
Allnatt London P io pan je, 6J«pcfrtDb 
198S-SB Btoe, BlilrtOb 19M-2PQ1 

Anoka Nordic HJdg* IOpcLb 19BS-B2 5pc 

Anglo United 0.7 ip 

Argyte SacurWos toimcDb 199247 SitfC. 

i 2 ocot> ms-gi 60 c 

Artrron I Broa OlopdrtDb 21.PC. StoPcDb 

Hoc 

Anctd Brltteh Englnectloe 4SptK ZASo. 

aSScS Pa oar Imt* LSSkpI 1.B25P __ 
AtteMte iMctroooUeao (UKJ 12pcLa 1991- 

Altox Proper^d* llpcOb 2021 4^C33» 

Automotive Pio d a cta XSpcPf 1-760. 

4.S5pc2odPf 2^750. SpcPT ASp 
BPS Indi 7UocDt 1BB6-91 3toC 10LPC 
DO 1994-39 Mac. lOMPCOb 1997- 
2002 SHoc 

BSS lOtmcDO 1998-2003 5NPC_ 

Barrow Hapboro 7.75pcPT 3.87 So 
Bau 4 pc PI 1.4p. 7PCpr 2. 430. SUccti 
1987-92 1.62S0C. BUicDO 1M741 
4.125 k. Lt5 pcDO 1987-89 4JL25DC. 
ia.6SocDb 1996-99 S-S2SOC. 4h»CLa 
1992.97 2.25PC. 7kpdn 1992-97 
3.075OC _ 

Bass Invars* GpcLn 1 BBS 40 he 7NpcLn 
1992-97 3 UnOC 

Baer horn gipcU 1984-94 4kPC 
Benrrcua 7hpcP1 2.62fip 
Beflkn SpcPf 40 

Brrtsford (S. and WO SpcPT 1.7 So. 7toPC 
Pf 2.625 b 

Blrrnkl Q on kart 7kPcL» 1987-92 Mpe 
Blackwood Hodge 7hocPf 2.62SP _ 

Bhie Circle lnd* StwePf 1.9250. MaBCDb 
1904-2009 2toC 
Eoddlnaton 4 pc 5b 2oc 
Boot (Henry) 4.2paPf 2.1a 
Boots 7HPcLn 1966-93 3%pc 
BoKOidba Property SpelxtPf 1.750 
Bow 1 ter lnd* 4-3&ocPf 2.1750 
Bowttiorae 60CB 1986-93 40C 
Bowycr* (WlltsMro) 6APCfa 1965-90 5>MC 
Braid 9 pc 06 1986-91 4Jspc 


CaW?*nd Wlr a l sa i 2.0 Sp 
Calrter Cp 71&CO6 1067-82 SVoc _ 
Caledonia Invasts SpcAPI Ute. Do B 
1.750. 

Cater 7pcDb 19BS-90 3*1PC _ 

Camoran U. WJ BLpcDO I9BB-93 Stoic 
Capital and Counties BMoclsCDb 1995-96 

3 koc. 6topc1*tb 1994-99 shoe 
Canto EnolnaerhiB' 5-BSocPf 2.975p 
Carlton lnd* gijieLo 1986-91 4toBC 
Cater Allan Gilt Edoad Fund Pf S5p 
Gentary Dll* Pf 2-625P 


THURSDAY 

ConQBOBSr Morioz» on sizppls- 
xnentaty and 

benefit orders am regulations; 
Motion for the Easter adjourn. 

m Lords: Abolition oi Domestic:; 
Rates (Scotland) craa- 

mittee. Broatosting - BIB. 
consideration .of. Commons 

amendments. ... 

Select committee: Committee 
on a Private -BiH: Bexley 
London Borough BiH ffipom A, 

kuo am). : 

FRIDAY ' 

Commons: Private members? 
bills. . - • ■ 


noil O' MB* BBBB NV inxM 

SB'SM-aS' _ 

, v LSS»o^B«H»ritr 3tope - 4»B». 


lTi^z^^^'pcI 99 ** - 

feSSS 'fi&'ASSJRPi UK SVK ySSmeenJjhs ■££** 


tS- li55 i 'l?p?lTSte 1986-91 Stope «U» Sub NIB I WHSg 

L s J . t ms^»‘ H r^ nn8 i ssrS1^7^sf a i^:«_ id**™* » 


CbarriNtBO* ImteH tpUm 198B-93 3gG 
Opcic 1966-93 4PC. IlUiPCUl 1B95-9B 

Cterekal Nm Tor* FKg Mts 1999 CBrl 
S56.11 

CborcrtCory Estate* 9pcLn 2060 4HPC 
C 2B67p^ Coovnarelal lovaat Trust lac 

City SIM Estate* lOpcPf Ip . _ 

Clayton awandre .7 WDb 1966-91 Stoic 
Ctota Bros EocDb 1983-66 3pC 
CoS VlyaHa 4.9PcPf 2-45(3 
Co mh lnad Electrical Maid 6pc1utSb 1987- 
199Z 3pc 

Corep Air 8*tocD<l 1992-97 4A.DC _ 
comtedi Flnanca lltopcLo 1996 5 237 PC 
Corad Fold Fields CtecU 1987-92 Stot 
7toPcLn 1999-2004 stopc. SUpcLn 
1966-93 41apc 

Continental 1 1 Una lx 0.020* _ 

ContirwfltaJ ll*«« Osers Flu FttiNtt 1994 

CopaMLmaa Intnl 7feDCLn 1971-90 3Apc 
Corner Brook Pulp TKpar 4^ocP1 (£11 
2-25p 

Coapty Propertle* 6.6PCPT OJSp 
Courage Gp 7,ipcLn 1994-99 SJSoc 
CourtaukJi 7pcfa 1982-07 StoPC. 7toPcLp 
2000-05 S^teC 7*i pep 1989-94 3 tope 
Cowl* ffj lObpcPf 5.25PC 
Credit Foncier da France 14lipcLn 2007 

CraS 1 CkSpkaLi IntM BVpcb 1962-87 


f. HO HMbs. TtopctP. 1381-91 7-1toc2ndDP ^ 10M -9« 

««l Mtetand tortnato »urt Wgfc Sm» 

and Provtadat Poster BtoPCLa. blvmi tecH (Tnc MM *» 


Prod* BpcPf 3pe 

Cradta Gp 14pcp 1992 7pc 
Crosby Woodftr Id 1 DpePl SpC 
Crown House 7toP<^r2.B2Sp 
Crystalate BVmcLn 2003 4toPC. VoOM 
1999-2000 4toPC 
DAKS Simpson SpcPf 1.7Sp 
Davenpor t* Brewery 4pcDD 2pC 
De La Ra* 2.45pcPf 1-225(3 
Datoanham* 6Uoc2ndDt> 1990-93 XtoPC. 

BtoPCLn 1986-91 3Upc 
Davenlsfc U. AJ StopePf 1-925Q. 4Jpc 
2 m! PI 1J7BP 
Dowty 2.6(3 

Drayton Const) Trurt BHccALn 1994 
3UP& Do B 3 tope. 7*jocLa 1993 

Stopc 

Draremond BaePT 2. Bp 

Dudcbem (Aiaxander) 7BcDb 1987-92 


The results of the loss of vital records at the Open mm 

University are likely to be felt for a very long time. 

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Weston Records Management is a specialist service 
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management of all your valuable information. 

Please complete the coupon and return today rf you would 
like to know more. 


I Twould like to know more about modern, oost effective, secure off- I 
; site storage and management of my computer media and other 5 

I vital business records | would Ite someone to vUit „ 

. Send more details LJ me to discuss my problems. LJ . 

Name 

J Job title ] 

j Company — j 

i Address — i 

• Tel. No ' 

I Weston Records Management PLC j 

| Weston Security Centre, 100 East Road, London Nl 6AA Tet 01-253 1000 | 


iferasafe-i-.rt 

fcap sj, » ,se -* 

hssjs-<a , s?s i .3^..»- ^aawri&Msr .»»« 

Bff jftp rt S S ’ $97-2002 Stood paSteid Ctertl sSb^ 8 ‘ - • 

I^^Wv.sSh StDt> 1986. YoraTTOrt BpcCralA 1995-2006 4PC S€Ot«rt.^M IraTrt SpciY l5*> . 

IMIJtoC. BtoPClrtOP 1 966-91 3 tope vagNOSAf AWN. 1 xradinp Stood rtPf tox. 

M. aod C. Coaroralen Tit. Fnd. 5.19p rv«MP^#y N^TVVGS . 

VlZ&G. ° lm Vra * **• CO **“ 0 7PCW 1967-69 

wf- 7^ U 2ASo*^' 5l4PC gtesSJ^^cJS^S' Houra 47. Qppm agraop 4toraa>6iiaaa 2topc 

.« srara 7PdA. 1999-2004 ^ uatekrak *■ 

12pclStIM> 23^, ,6PCto epclB. 2000-06 yS^ EC. 4.00. » ^pcJ^CoraPf 14P. •*Sr^.£Sl 

ZStK "«i -SSJ* 1 2S£*?S87 &**" W*- 

stoiSopf. tezsp. 6»<a pr^2.i p nort*: ^ b w*gSS^»Sc»5i^Wp.. Sto^bh ^ 

Magnet and SortAerw S2JocW. 2. 623 d fitfljK* Lite 1 99247 2toPc 

SlTve? E,« 4toPtPt 1J75D tnST TR _Momra» .fct*_1i»-. .Trt_, 6ccflf tSSm 

Marcton Ttoowptoo 4M6 Eroratted 7M* TR- Property h»r Tat 4to»ePf 9 S79p TT 

1993-98 3 tope ___ SvcwirabWdoiO TR Teckootogv tav Trt Boor orw»‘- . 

Mama NUrwa 25(g. cSnUao Royal Pc cfc a wO B T* T raitr^a Corp mob 1972-8T 

M ercur y Intel. JtopePt. 3-8125P j4C k, (Win) OtoOcOO 4 987-62 StoDC 

e&xlgs'isr t?u N ^ 7 & » 

1987-Si <>k0C .rt. ante iqocuoj In Afllifica And Umpon luim T«bMcd Jerfev ■ s , * 

T^is3f ! i£P esuvsi xa’&h-fSx’irstSzS:- ■■ 


NaSooal Star Brick 71 la 7*aPC7 «»» 

Tyne «Oty) n’*pt*ted 

3017 StoPC __ 


INTEREST PAYMENTS— 


AAH 4-2PCP1 2- Ip 
AIM Group 1 j9o _ 


Nm Itorograartoo Tut C1OT3> 12ta 200* £Sv IwSoOmljD 1997-2002 5topc 


A/(te64.voo> SpcDD 1969-90 rt topC Itok 
TW»7 Ito*. StoDQDtolOM-aa 


MartMvn Tyteocsre ^OrtS 


1996 CR*J 
Rj» 3 tope 


c^lsrn 4-2pc Pf 2.1 p 
Mm U. and JJ 7'xocLn 19E 
EMAP 7toPcDb 1968-91 3%pC 


1987-92 7 tope 


Norweni Boa Wd. 6toPCO«t» 1969-93 TecWr lOpri^P lgjO Spe ^ 

js ss» 

2.625»_ .. _ BIT ,-Jto 


Arsus vrts% 411699 7«apcPf 26J9P 
A*» Property 1Q8 mPc 1 rtPto 201 1 SWe 


^Houro »SS 

«r-^y 4pc3 Corapr i^4p. 

3VO ortdt Edil TtoPePf 20QSO • - . 

TR lad GroJTat 4topcPf 'I.S7SP.. StopcDb . 
199247 2toPC 

tr Nram ta ipy Trt tetff ioj, 
TR- Property lur Trt rttoPcPT 1 S7S» 7 
TR Teckootogv tav Trt Soc» f ins,*. . • 
TR Tnotees Coro 3pcDb 1972-67 ltoac. 

BtoPCOb 1987-02 Stop? 

Tetovtekm South NV 79 

Taodrina Haod ra d Wlmb Uk Itady ’ . 

SAl ■*** ' 

T t Sfi dSacSen^ipdatPf' A 7-Sp " 

' Top* Catate* 7 tope to> 2014 Rpc' 
Trae^Kernslar MUtbaaro Ml«» ^ t.Btff 

emts - vssri&uiri 1 * \ . 

etopSji |S5 < S^r3SS. W44,fc **•*«*; 

I99?9B StoJrtBY 1^2Sp ‘ 

snur ^ '"T” 

2*»PC. . TtoPCLP 


SrolHmralte 7toocPf 2.625P 

BrtdOn 7 Pc PM 1.2Z5P 

Bristol and Wot Hotel* TtoPcIrtOb 1987- 

Ironing Port 1991-96 Stone 
Brlttiti- American To&aoCP SpcPf 1.759 
British Amor Tobacco Invert lOpcLn 1990- 
1995 Spc. lOtopcLn 1990-95 5 tope 
Britten Asset* Trurt 4toPcPf 1-575o. 
SPCAPf 1.73P. OpcULS 1985 Spc 
Britten taraol ISpcLD 1995 SteC 
Brrtteb Car Auctton SpcPf 1.7& 

Britten Land ispelrtb 1987 7 tope. 10 tone 
IrtDb 2019-24 5toPC 
Britum Vita 7toucDb 1967-92 3 tope 
Brtetoo Estate 11.75pcf«DO 201 6 

5.B7SPC 

, 5x n £S? > 2^“^ 2003 


ERP BpcLn 1966-93 *pe Oliver (Gvdrgu CFootemarJ MW"" 

Etetera Intel Ira Trurt 9topeOb 1992^7 ^^ttetteriro 7WB11W4D M 
CdreS^roh Financial Trurt 13to*Ob 200* °^ S n lM ** “ 1 ^OucJteteStk: 2022 

,88M3 M E*to OX**** 

ZlvST Robbias 4.7peM^ L35p nl ^ rmn^n^ Tl i TT. 6topC 

Effi »»*n-75p i*™ 

iSS^’raSiiSo BtopeDb 1965- 


1966-90 3 tope Moa^nkl^&Pf 


E add hard Tgjct* Prtroteou Mu l te w i laajprtji 

Ehdltsii Intnl Trust StoPCPf 1-925P- 7v*frt _ , 

(OtopeDb 2014 StoTOC Pboeojt Tteiber SecOwiPf 2„7P 

Eraltek China Clay* StopeDb 1565-90 PhbW-M. 2? 

Stoic. 7 UpcOb 1967-92 ItoPC Ptontebon Trt T’lPeOjif* 

Ersklna House StoncLn 1962-67 2to»e £^£“2!^ 

Earn Water BpcPf 1969 4PC. BtopePt jg ***** l"Otl bpef^Sp 


Skirt nSrkln»‘>pePf 2^56 

E?iE ^essjffsbsr w^E^w^t 

g^STvte^vteJ. 6JSpdM_19eB ^ THURSMY 'APHL * a ’ V - 

?Sm bIw? 1 itoSrtii* A J2F222* mewings— 

, __ _ ■ TeMUt -HTBbtePtOD. HuddaraSriU. 

,SS»fatSL'^ 




Wtoate Coro 3nc rttopc 
WtotaH* 7PCPT a^p 
WloterlipteaBL itndm Ptayn* 2np 
Wlteo Ipv 6>»cDb 2016 4 JSpc v 
WpOteOtobBTi TtoPCPf 282*1 hid 


6pc2pdPT 
tahr 790- 


1993 2.476PC 

Estate* Property Invert 10 tope La 1994-99 

CW 

Eartoo Centre Prop* 10.4pc1rtDb 1995- 

1097 52oc 

Eva lad* BtoPCDb 1985-90 S.25pe 




Ewart New Northero BtopcLn 1990-95 

Exteroal I must Trust BpcLn 2003-08 

P and C Enrotrurt StopcLn 1996 Umpc 
F and H Go us. 

Floe Art Devetoc BtopcLn 1986-91 dtopc 
Fine Splimer* Doublet* apctrtDb 2pc 
First mationol Sec* 12topc2o 6 tope 
FI sons StoPcL* 2004-09 2Uu»C 
nidi Lraun 3-flp 

r tore [DO amrMun I nr Trurt- S.lSpe 
Foreign Col invert Trurt SpcPf l.75p 
Forml aster llpcPf S.Sp 


P o r f noote Water IQtoP CRedO b 1996 indite* BApcPf ^-^PC. 1 

lOtopcLn 1994^9 'SFSSZZTiiS 

D.4pc,rtDb 1995- 

90 3.25pc Pjteet^HMi Nnr Trt TVClrtMtDB 199(6 chemteal. Nm Vate Q-6_Bct* 


Frogrtt^Htog lur Trt TpcIrtMtDl 

PrartootUF-Bariie C*p FdB 9>«p«f 

IhtbKcSbrrioe Cneerorfae a.74rt* 


Sreurtoor. Uehuodi MW Hofei. RfcfntogO 


SST’Hirt"5icPf I'.TSP sSSR' Stontee BWm 

# I*C» R^SStond’HlST'KlSSS 
*°ARD MfiETINOS- 

C 7pe paly 1 OpO 3.5PC. 6tpc (Fniy Ptoakr. 

7P02.6SPC. iSS (Finlr dpOPtlAne. Anoto-Airaflcaui lev TN 
StoPCPf 1992-94 StoPC^ , BSG Intel 

Brtra V*nra Water 435pc gtoity 6topO Mbs OJ - 
Pf 1962-67 227fK 4. 025 pc fFCTfy Cost* Brpt - 


nttH tecPf 1H5* &tope2n«Mf 

tetoocUote. 1M643 Atone _ 

Tte dtee ro Nat Glaro 7PCR146P. 7pc2«rt 

fSd 2 J^ OpCDb 1 907-92 Vtopc. 792BC3M 
19S7-9Z sSc. 7!*ecUn*Ln 1996-2001 

I” 00 


jenrity Sanrfgw. WdmMBd Hm Hotel, 
Mtemood Hitt. Rtrtmoud. Sonny. 12-S<5 
BOARD MGEFING5— - 


cinDto IWHB.IHrt 


5tooc> Pf 1988-93 2.0T25PC. 

1090 V . • . i 

Ca aversion BtopcLn ItoPC - 


Ibctesrd, 7 1 e«xUb 1967-62 Itoe Co aversion 3toP cLnj 

lUpbta and Issues lav Trt 335* Cap Coro of. teidan 3pc 


n 11 Kb 

r - atx 37 era. Mutr Mrttundl* Gate J lo 

KMrtMM* 1987-92 Spc . «^* *™ * * « OtortCb 1966-94 

E 7^£, VIS7.92 7J Sgf 18BM3 *?SS55 2? ”PC2ndPf 3.6ft». «pdJ1 

^ 

General Instrument 6.25cta ra? 7- * 2 

GtomMd Ikwi hk» tecPf 2-Bo *n tf u Z»1P 

Globe invert Trurt lOocDfa 2016 5.106PC. SLiS* ichf^Sr 
lltoPCLn 1990-95 Stopc 3 alf — ?■ . Pf Z-Bp 


CourtauMs ClotWno 7toPriH «1) 
Cowan, de Groat l-25n 
Craig Rosa SpcPf 1.750 
Drayton Far Eastern Trust O.BO 
oravton Japan Trust 1.05P 
DobBlar llpcPf 3.85P 


London and M a n e fi ea f r 
Morrison cwno Sepefiu ari ort* 
Portal* . . 

R^ditjirod Co bm 

. WMr Grp ■ 


lOtoPCOb 1992-67 5>ape EJnM* 0.12-Srts 
-r- V 4PC East Anglian Water 


3 -Spc Cora Ord 1.7SB. 


Glynwed Intnl lOtopcLn 1994-99 SJ75pe 5grg’*t? ll l * U * e 

Govatt Strategic Ira Trust lltoocDb 2Dt4 iSaSST'dae 

Tro« litopelrtOta s-875pc Soottlte Mane fra T’neri UBSa 

eteopollten IOpcL* 1991-96 Spc Sgwttek AMt jjdi tWracUra Ln, 19 94-69 
rtland Estates BtopelstDb 1OTO- _2to*C. 7 LpoOuL, 19M-99 GtoPC . 


Govatt Strategic !w Trurt UtoPcDb 2014 

5topc 

Grainger Trust lltopclatota 2024 5-875pc 
Grand Metropolitan lOpcLa 1991-96 Spc 
Oral Portland Estates BtopcIrtOb 1990- 


2 tope. 7tofacOo*LB 


1995 4 tope. 9.5pc1ttDb 2016 SJOlpC 3rptdirfi_yort Tst Stopcyf 1A375f. 4«afC 
■rant Universal Store* 7*jpcLn 1963-68 « I.SfSp. 4poM Urirt «pc-14pbM 2020 


Grant Universal Sure* 7*jpcLn 1963-68 MJ I .S7SB. 4pofY Iirirt «PC-14pcOb 2020 

3 J* pc opc 

C rouron Whiter 6pc« 4pc Wrt ' &£ * IJff-A ra 

Graenfrlar 1 evert 2p s °™g..™agLSgy*^ Tptff 2. AGO. Toe 

Greenharon Sec* GpcIrtDb 1983-69 Spe. 

EtoPClstDk 1983-88 3toPC Scotland T»»PcPf 1376 a 

l GraSbare Trt. 6toPC Old. Ui. 1986-93 3to -***£* **- rnr||nn1 „ 

pc. 7toPcLn. 1966-81 Stopc. BpcLn. r™ S?" MVnSva — - 

™ 3 ^ PC i^p^»- '"M2 BAzs 

Grind lay* EuraAnance 1992 5319.13. Do. - 1 *”' 97 gfo*. „ 

rltg. Krte No. 1992 331 9 1 3 4Jpc»» f_B-67SB. StopdW 2 j675p 

Guard Bridge Paper CtoUdOb 1964-66 ? lr A ^ n,Tt v? ra 

GuanJfan Royal Ertfuaou Arturanoe 7PC 
Pf. 2ASp smttb WMraorte 7< x pePf 2.6asp 

S£i n ^^ i s5£i5a , i9^ aooRriM 

SB®™- s “- 12555 

Haslemcre Ests. lOtopcIrtDb 1698-2003 Strafing *90 Bpd rtM lOb IMV-U 4pe 
Stopc _ _ s-erHng teds i«ff rSiipO 192S 

Henry* BtoncLa. 4«»pc. TOtoPClatOb 1992- StraMmf loneffsp 

Heron Cpef 1 7pc1rtOb 1985-90 Stone £5^5 

HertalT Consumer Prod*. BpcLn. 1985-95 sg^i^Xr gr . 2000 _oa 

H^Sn lOtopcIrtDb 1996-2001 5toPC ^ 

HIBBS and Hill BtopeDb 196B-S4 4toPC. .TbSSiv Ore SA^pV 
do. BpcLn. 1989-94 4pe ^?n^fl?^^ w ^ 9 2 * ,Sp 

Mill and south HWga. 14 pc 1st DO 2000- Tip Tor OrugSorem 

2006 7 pc Broweriea 3Vod}b 1 tocxL c, a' ra. idm.uc 

Hill Samuel Croup BpcLn. 1999-94 «PC 3pC rrac. KBcOti 1BDO-S& 

Homo Brew. EtoocPf. (£11 2.0125PC Tbotal SocPf 1.750 

^6{^S’ W ligf , 3 -2 tC 4 , U' 75P T s; ^ *-»■ *** 

impralal Coot. Gaa BpcLn. 1995-2000 <fS 

iS^p; StoncPI. 1WM1 (£1> 2.6250. km IMIrt 1 ^? 5 TtoPClrt 

?J®8 ^ B 1 Z 0to^ 7 n a %«^ 2 3^ T S!E* * *» l^rtMeDb 2067-16 

JPdte. 4 PC. StoncLn. 1963-66 Droriopnrad Group OtoPCLu 

SgTwsai® ,M7 - 92 4pe - 


1987-89 31 1 pc. 7toPCDb 1991-92 atopc. 
9pcDb 1992-199* *toPC- IIJOpcDb 
1995-97 5. 75 PC 

East Surrey Water 7 pcPf 1986 Up 
east Worcwtterahlra waterwwta 7pc Mrt 
Ord 3-5 p. Wpc Mk Oid1.75rt 2-Bpc 
0905) 14P. 24PC 0941) Pf 1.4P. 
S.BSpcPf 1.9250 _ 

Eastbounrt Waterwraks WM7 

2-1 pc. BtoPCPf 1995 4.1 875 pc 
Elrtldoe. Pope 4pcismb 2^ 

Etoctron House 63PCPT 3 J5P _____ 


DIVIDEND ft INTEREST PAYMENTS— 
Abbey National BrildlDB Society Fits Rate 
Notes 1993 £276-32 
AWtef Texrile Sp 

^kf^c ffS a ° UW# «* B • 

district water Tpcadax 
“^^peMw-/tew 34-5P- L5K. Man 


IS3SS- SSt 120 * .- : . 

E rr 2 o^ fSSlrtKrai'ii 7 ' K ”; MS " 


SSSS^S ***** 

g Mte 3toP0Pf ®1 i9J5p 

•tag rui rtaura « s.&o 

Sjmdard Qtert n rad IZtoPetlnaLa 2002-07 

Stovrira Ip* BtopFf 1«Ba, TtoncLn 
* a,C 1968-93 

■«««» Cara Bpd rtM lOb 1906-93 4oc 

■SraSSU h SSJ? F £ n ' 1K3 ***** 

vkteuu topcPr sp 

^ipcUtoLo 


Tbratete* Ore 6jfi3pcPf Z.91SP mmPton_TS* 9_1 toec q*»_a? 

Tbom ITM1 SjncPI v2%> HaDWMI .Ttt B.YSpcPt 2-8T75P 

Tto T<y OrvifSS; Hardy Haroon* BpcPf 2. IP 

OtoocDb ItoPC. Cacte 1996-95 HJSS“v *I? W * rr ®‘ lpcl - n *000-68 Stone 


exKMSbtert'JS^UKPf 5J5P 

Famham l2JncPf 6.25p SisZtHS 

Fergabrook T2pcLr 1992-97 Spc Storga Sp 

FarrantI 3£p3»dPf l.75p 1 Uw4<h 

Pint Chicago 37JScts _ . .. __ Trade Prom 

Fleming F ar Ea stern Ira Ttt 4to9CPf Ward 125, 

FlumlrS?" UMwau al In y^Tst SpcPf ITto 8 

GfiC-Oilott Aotomadon Bart* 1985-90 COMPAN 

2toPC^ etopcub 1969-94 Stopc |PP. 10 Fa 

sirGiS£? sSip*^ *'*"** Ss’af Ss 

— — Meywood I 

QrtdFVi^of Souib Africa 20 J6B5B4P ?S£huS! n 

gsn.ss&«te. 4 «y TtBBssp _ 

STSSi^bSSi 1996-2001 4 tope f£d*T5^ 

Gulf Western Indnrt 30ct» 

Kalllte 3p BOARD I 

Hamilton Of! A 0.46730* PteatB * 

HMapteP Ttt 61 toPCOb 2025 5J6 26 pc Braedon and 


Note* 1993 

JNrtt 6-85P 

Trade ^Promotion SarricM IJp 


FRIDAY APRIL 3 
• COMPANY MEETINGS — 

BPP. IO Fwdiorcb 5trart.EC. 1130 

Wjysar* s? , i7?s w ' 23 V- 

l 1iS212 od Ai'l[!L U *5*- WSP** Mer c u r y 

****** C wm> 

Lading Lrisara St John* HoMPr, 7b* 

<"S^u whl»ia Water. ' Knara MIS, MUt 
Road, Chrirtcbuicb. Dorart. 2SO 
BOARD MEETINGS — - - 


gradon^artl Cloud HOI Limn Wka 
DIVIDEND A INTEREST PAYMENTS— 

Abaco Inverts o.fp 


InOrcape StoncPf. 1990-92 (£1) 2.6250. 

aijpePf. 1960-B2 2-979p. 12toncLo. 


J990-B2 

1993-96 Stopc. lOtoPri-n. 1990-95 BtoPC. 
BPCLn. 1967-90 4 PC. StopcLo. 1963-86 
2 tope 

In co Engra. Prods. BocDb 1967-92 4 pc. 
llpcOb 1B96-20C1 StoPC 
Industrial Newapopar* 6oo»r. 2.1* 
IntarnztJonal Bank ReC Dev. 14pcLn. 

1967 (RagJ 7 PC 
Irtranatlonai Paint OtopcLn. 41, pc 
Iraeatdrs Capital Trt. 7 topcOb 1992-97 

3toPC 

Investment Cm ftxPf. 1 -OSp 
I nraM t*l Industry 7toucADb 1991-94 
3.625PC. Do. 9pcA0b 1991-94 4^pC 
Irish Gian 7<<pcLh. 1966-91 -Stopc 

Maly (Rep. Of> 1994 (BrJ 556.67 

Johnson and . Plrta Brown IldSpcPf. 

SJ2Sp.11 pc Ln. 1993-96 6A2c 
Jbnston Grp. lOocPf. Sp 
Kara Tit 4.9pcPf. z-45o. 

KelKsclc.Tlt. Ln. 1987^8 6.5445 
KelsraJndL lltopcPf. S.625P 
Kant <GBI SpcPf. 2.187SU 
Keyttoro Inysts. SpcPf. 1.75P 
Korea First Bank 1B69 ST66.S8 


Tbotal SooPf 1.7150 Homo Group Seta _ _ , , ‘** p 

Tor Ira Itot Inc Ste. dprito 2 la 41 HB|1 Corpn 2 tope, 1918 ttrf after) ItoPC. AracJWe lXp 

illJngwortti. Morris BtopLPf L275P. BtoPC 


lOtopcLn. 1990-95 StoPC. 
I 4 PC. BtopcLn. 1963-86 


Pf 227Sp Dyson CJ. and jj 2p- A Zp 

lodependgnt Invert. 7pri»f 2^3p Eaglteh and EcMteta Iraostore 141 

Johnson. Mam>ey Sprtto IJSp aM1ZB7o. Spcpf 1.75p 

Jones (Tenest) U*wUh«A4D feyode 2^2p 

1 EftflM JutNPH te , lnv*« Trurt 3p 

KJnBCev Forester l-BZap Fleming Fledoebna. Invert Trust l^S 


Afrfnill 0p 
Bteodan lnd* 3.7p 
Mdc 2p 

t»ir Acre Prop Trust 1CL2pc0b 1991-96 
Dyson U. and J J Zp. A 2p 


l 1991-94 U ^L QM ln * atrf *‘ lOtoPCLa 1996-2003 

JQA ^.<rer . ° } * >C 

: 5topc^ Ur*«l Glass 7tope1«Ob 1967-90 Stone 

7 YSCL Co nsortium llpcLn 1998 s'aoe 

imspcpf. V *2?JS, ^VT’Jj.^spcPi (til U7ip 

Vlnteo Group 1.05p 

14*5 W e a !^ <AHred) OtopcCraPf (Temp. Soap) 

Warner Crttete HhSfft 6'a CKlo 1991-96 

Warner Holiday* BtopcPf 2.1«75p 

8 W assail (J. w.i Pf 2.625P 


KHHrrworrii Charter Ira Ttt 1.78P 

IS? isf-ebo jrua* i&su &, (,o,t¥ 


Leeds (City o© I3>?c_2pps Btooc 
Lewis’s invert Trt 6topcDb 1885-SO 3toPC 
LIPra But StopcPI 2016jL2B(* 
UvcroooTspc 1942 6>r after* ltoac. Stone 

LraSf 6-3P . 

Lowe f Wobert HJ !*> _ 

Marohald Brewery liracDb 2010 Stopc 
Markbeath Sacpritfea O.W . _ 

Maudes (jonn) gpccwnPf *So 
Metal Box 4.BtxfiHnPf 2.4SP - 

Matnnoirtan Ta 4toPCCumPf 1.5759. 5pc 


PENDING DIVIDENDS 

Dates when some of the more Important company dividend 
, statements may be expected in the next iew weeks are given In the 
following table. The dates shown are those of last years announce- 
. meats except where die forthcoming board meetings (indicated 
I thus •) have been officially notified. Dividends to be declared 
will not necessarily be at the amounts in the column headed 
- Announcement last year.” 

Anoounop- Announoa- 

Duta ment last Data muni last 

year yssr 

; ■ Board mooting Intimated, t Right* •Kwlfc Save ...Apr 23 Interim 1.8 

| Issue since made, t Tax free. & Scrip Laporte Apr 17 Flnei 6.05 

lasus mines ms da. V Forecast •Loins (J.) Apr 2 Ana/ S.O 

■AMEC Apr 1 Final 7.0 -Lend Scottish 

•Abboy Life ..JVpr 1 Final 4.7 Marino 09...Mor 31 Rnd 7.7 

■Auoc British Mowriom (J.)..Apr 10 Fins! 10.0 

Pont Aar « Final 6.75 *RMC Apr 14 FlnoJ 8A 

BCf „„.-Apr 29 Rnri 16.0 *Rocldtt anti 

■BFOC jMot 31 Final 8.0 Cal<non..Aor 2 Rruri 10.0 . 

' *BSG IntJ Apt 2 Rml duo *Rto Tlnao 

•Sank of Zinc -Apr 0 f?rraf T5JJ 

9ootfand...Apr 22 FJnH 8.6 •Rugby Portland 

Bowstar ... — Apr IS Final 5.5 Cemsnt.Alsr 30 fBnef 3.6 

•Brixton Ert ...Apr 6 Anal 3.35 •Scottish 

•Bunzl Mgr 31 Final 5.75 Hariw bio.. Alar 31 final 

Burmeh Ofl ..Apr 10 Rnol 826 "Slough 

•Button ....... Apr 2 Interim 1.6 Eantea...Mar 30 fine! 3.3 

•CoOktOfl ,.r..Apt 2 RimI S.3S Smith Inda ..Jtpr 9 Interim 1.75 

Costein Apr 30 Final due "Sun Altisnca ..Aar 1 Interim 1.75 

Eva red — Apr 10 Pinal 2.25 Tramae Apr 29 Final 11.76 

F. R. Group ..Apr 30 fin*! 2.5 Tats end Lyta Apr 31 final 7.2 

•GRE - —Apr 1 final 19.15 *Taytor 

■Glixo Apr 13 Interim 4B Woodrow.. ^pr 14 Final 13^5 

•Han (M.) Apr 8 Final W) •Taco Apr 29 final 3.7 

•Hammeruon Tootuf Apr 29 final 2J> 

Property.. Apr 9 flnet 7-5 Trews and 

•Hswteor Arnold.. .Apr 21 final 6.57 

Sddoloy— Apr IS final 104) *Welr Group ..Apr 2 final 2.125 
Helicen Oar ...May 1 fine! duo WoHcoma jMar 1 interim ou* 


Mrtropalltan^alor SpcA 63-2003 ItoPC 
LunbWi WtT WU 5pcDb 1 tort 
Wsrt MhMIcauK WtrWk* SpcDb 
M sk ico Fund Inc iSI) 7cte 
MM KcntWtr BtoocPf 1997 1«11* 
Mld-Susm Wtr 7«cPf B8-90 34K. BtoPC 
Pf 1099 4-BZSpc. lOPCDb 2010 BpC. 
12toPCDb B7-B9 BtoPC 

tS^^^hSo 9 ^^ 

Morton SimUODr Fabric* SpdstPf 1.73P 
Ns tinnal. Homs Loan* Strode 2005 

4rOfloWPC 

Nracartte Gstesfcrad Wtr 7pcPf 94-96 


Ttf ssss^nr^ ,B ”“ ^ 1 ‘ ES ° 

a -ra. S°f5f B “S’*** SMIL05 
907 4-75 P. Huntsrprint Sp 
(FmlvBtoprt Lawtro ip 

gS raw 

J *» c * ^ 1J230 • 

Potty Peek tnK. (5-23p 

*>™ Ssssy fS^Usr* Tn-t 1 ’ 2Sp 

^ SSS? 308*%^* 


traunra RuUcrioo Id 
jjngpragro Oral Ml* 

SATURDAY APRIL 4 • 
DIVIDEND a. INTEREST PAYMENTS— 
Buttonwood Brewery 7BCPf 2^45p ' - 

SUNDAY APRIL 5 
Q™' 0 *" IWTB my PAYMENTS— 
Bpcpb 

Annqltlro _2jpc ijik 
B ^ rS«2E25 r vT™“ ’«PePf 5*506. 


Narort* Gatrobaud Wtr TpcPf 94-96 _7 Mj» 19BM7 3Ipe 

terara VgrL ISraf I375n. 3J5pc ComiotldMeO*ȣc 7 Jto^ . 2JE7 *P 

pf_ 1.75» 3*socFf l*2Sp. 7pePf 1986 Puadlng Stopc iMO^natooc 


*-'*■ i428pe 


ruuding Stopc 1980-91 a tope 
oisp® ^*ntmes sod Gan Fund lac 


Pen Insular Ortratsl Strom SocPfd iysp Tr^Sy «k 2QOZJ06 Spc 


THERFTH 


ferMrtna flanoltesamartitite 7 

asr'*"' 


M^RCTJraNQ 

FORUM Organisation 


LONDON 
6&7 May, 1987 


Abmwtoeix 

te i®P h Qne01-^2n355 


hKhcapa Apr 38 final 114) *Wlmpay {$.).. Apt 9 final 2S 


itfce 


■iD' U* 


\\4s 


ISfinlS 







March 30 1987 


WORLD STOCK MARKETS 



io ! 1.890 

' 


Goaaa 

i l L SS 

0^0 Bfio 

Jungt 

VrtSt 


3CO . 865 


High Low 


CANADA 


High . Low 


AMCA im *12% 

Ablttbi Pr 540 1? 

Acktonda *17% 
Agnk» E *33 
AJbrta En S«% 

Albrtt N *16% 

Mom *51% 

Algo Cert *21% 
Algonra St SM% 
Aurora *13% 
AKo I I SKJ% 

Afco II S11 

BC Sugar A KHi 
BGfl A *12 

BP Cauda 542 
Baniatar C 58 
Bk BCd BO 

Bk MoM> 5341} 

Bk NBcot *19% 

Ban Can *43% 

Bow Vrty 119% 
Bratoma 220 
Brim a l M *28% 
Brasoan A 14014 



1 Stock Hgb law On Owg 

TORONTO 

Closing prices March 27 


1* 11!, 
40 40 

ir% 17*4 
32% 32*» 
19 1918 

a s* 

13% tiU 
10% 10*4 

s ? 

*1% 42 
8% 07, 

7B 00 
341, 34% 
187, IB 
423, 42% 

wu «% 

210 215 
27% 27% 
®% 

81, 8% 
11 % 11 % 
20 % 20 % 
112 116 
28 28 
13% M% 
12 % 12 % 
14% M% 
30% 30% 
34% 34% 
27% 27% 
37 38% 

22S 280 

21 % 21 % 
31% 32 
16% 18% 
W 10 
20 % 20 % 
18% 18% 
18% W% 
S 5% 
73 74% 

24 at 


8*1 

Stock 

Wflb 

law 

dan Oog 

208385 CTkaAf 

515% 

M% 

16% 

-% 

08213 

CUD A ( 

S21 

20.', 

20% 

-% 

700- 

CUM B 

S21 

21 

21 

77575 

1500 

Cantor 
Canron A 


31 

17% 

31% 

17% 

+7, 

8400 

Cora 

513% 

12% 

Iff, 

+ % 


Care A 1 

512 

12 

12 

sn 

Ciri OK 

51/% 

17% 

1«8 

"% 

14284 

Cara A 

14% 

14% 

14% 


13535 

Calanaaa 

522% 

21% 

22% 

+ % 

37420 

CerafiJ A 

38 

81 4 


4% 

2381 

CMeitan 

513 

12% 

13 

+ % 

30700 

CHUM B 1 

517 

17 

17 

159B7 

pomflncn 

517% 

17% 

17% 

-% 

742M 

Compudag 

w» 

7% 

a 

+ % 

5900 

Compat h 

340 

32b 

325 

-10 

10550 

rnmtorm 

120 

00 

WO 

+36 

23130 

Con Both A *201, 

»% 

Wh 

-% 

27800 

CDto* B 1 

485 

480 

4K 


son 

Cora Gaa 

528 

»'■ 

2B 

+ % 

MOO 


525% 

28% 

28% 


48250 

CTL Bank 

5171, 

17% 

171, 


11222 

Conwat B 


U% 

14% 


835 

Corby 

521% 

20% 

21% 


5450 

C Falcoo C 

523% 

23 

23 

+% 

333M Cosofea R 

105 

03 

100 

+ 7 

3400 

Costoh Lid 

514% 

u% 

14% 

“% 

500 

Crawnx 

*23% 

23 

73 


104842 Crawnx A 1 

510% 

» 

» 

-% 

64100 

Cut Rn 

223 

+r 

10220 

Dental A p 58% 

8% 

6% 

-% 

18221 

Dental ei 57% 

7 

Sl 

-% 

3700 

Dmkon 

300 

295 

+ 15 

136711 Diefcnan A 1 *14% 

«% 

U 

+ 1% 

1688 

DKkRSn B 

514 

13 

B 7 , 

+ 1% 

248S6 

Dotaaee 

527% 

2B 

2B% 

-1% 

6S5341 Dam* Ub» 

517 

Iff, 

17 

+ 1% 

78301 

Dome Pete 

111 

106 

110 

+ 1 

1117 

D Twdia 

519 

18% 

18% 

-% 

45947 

D®n»iar 

544 

48% 

431, 

-% 

2550 

Donabue 

538 

38 

39 

+ % 

3790 

Du Pare A 

*57% 

57 

57 

88885 

Dytmx A 

517 

18% 

17 

+ % 

BOO 

E-L Hn 

583 

63 

83 

;JL 

03587 

Echo Bay 

*51 

48% 

51 

1901 

Emco 

515% 

15 

15 


232715 

8125 


59% 

519*, 

9% 

19 

V 

+i% 

70318 

Hcnbcdg 

*W% 

10% 

ta% 


17030 

Feo- Ind A 

5187, 

«% 

18% 

-% 

2600 

Fed Pton 

114 

18% 

13% 

-% 

7700 

75 

FCJty Hn 
Ford Cnda 

£& 

18% 

165 

18% 

■m 

-% 

3888 

Gondnlf 

513% 

13% 

13% 


16900 

Geac Camp 

180 

155 

180 

200 

Gsndto A 

518% 

w% 

18% 

-% 

MOO 

Qfamt Yk 

S2*% 

23% 

24% 

+i% 

4030 

Gtorttar 

59% 

8% 

9% 


+ 7 , 





2785 

573! 

1003 

m> 
2 at 
615C 
332£ 
115t 

» 

10 

D 

1 

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no 

3 


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D 

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able* Ce 

4300 

«nr 

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2880 

1 

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* 


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* 4 jT i T? i y 

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2H% 20% ■% 


8 % 8 % + % 


MONTREAL 

Closing prices March 27 


24821 Bank Mont 534% 84% 
8124 BocnbrdrA 527% 28% 

103375 BombrdrS 527% 28% 
18250 C8 P8k 5227, 22? 
8B337 Owrawlua S-MS* 14 
900 QL 531 307, 

9965 ConBaUi Sam, 10% 
2047 DomTxZA 519% 187, 

4300 Mnrrm sip, is% 
108368 Na<8k Cda 518% 18k 

17253 Havana 514 133, 

115285 PDwar Gorp *20% Iff* 
12216 Provlgo 521% 21% 
3K» RoUondA Jiff, 19 
17731 Rural Bank 534% 337, 
2S35 StB/nbrgA 542% 4T7, 

Salon 10.850563 shares 


341, -% 

28% +% 

+ > 

22% -% 
■M -% 
31 + % 

10 % -% 

a 

a ;s 
S 5 

19% 


OVER-THE-COUNTER Nasdaq national market, closing prices, March 27 


Sain Mgb In* Iasi Dng 


Soxfc 

S*c 

Hi* Lm tin Chao 1 


IHntaJ 





R R 


RPM .72 

34 223 

25% 

2«B 

247,+ % : 

RadSys 

12 720 

9% 

9% 

B%+ % ! 

Rafner 1.16 

131113 

45% 

441, 

44% -11, i 

Readng 

31 204 

27% 

28% 

28% — %. ! 

Reaves 

30 568 

12 

11% 

11%- % 

Raise 

100 s 

11 

11 

11 + % '■ 

RgcyB JO 

1061 

7% 

7% 

7%- % i 

RntClra 

33 680 

34% 

32% 

32% -1% 

RepAm.15a 

81580 

16% 

18 

10 - % 1 

ReutrH J9e 

3129u7D% 

89% 

88% +1% 1 

RayRys .re 

16 S7 

38% 

37% 

37% -1% j 

FObilra 

0831561 9% 



RchmHI 

400 

T7% 

17% 

17% - % 

RlgaNa 1.10 

12 47 

32 

31% 

31% — % 

Roach 

47 106 

10% 

10% 

10% 

RoodSvl-10 

19 1047 

371, 

35% 

36 -1 ! 

Kocttua 

679 

15% 

14% 

M7,- % ! 

RgrChA 

183 

14% 

14% 

14% + % 

RosaBs-ICa 

10 are 

22% 

21% 

221, +1 5 

RoasStr 

143* 

7 

8% 

B%- % 5 

Rouses JO 

64 58 

34 

33% 

33% i 

RyanFS 

59 095 

38% 

37% 

38 - % ! 


1 

5 S 

l 


SCI Sy 

SB 821 

28% 

27% 

27% - % ( 

sa 

to 

26 

25% 

25% - % 

SHL Sra 

451 

23% 

23 

23 — % , 

SKFABI.ISe 

392 57% 

67% 

671, - % } 

SPIPh Xtt 

IB 

25 

23% 

25 ] 

SatcNs .451 

383 

32% 

32% 

32%+ % } 

Salacd 24 

43 838 

51% 

501, 

50% 4 % 1 

Safeco 1.70 

9 2651 

57% 

56% 

56% — % } 

SUudes 

23 578 

231, 

23 

23 — % ] 

Stf’autel.l'S 

14 2642 

50 

49 


SalCpt 

U 183 

13% 

13% 

13% + % } 

UnUre 

26 183 

«% 

16% 

Iff, ^ ] 

SanfndB 

20 1001124 

23% 

24 + % 1 

KrtIUin. 

160230 

6% 

8 

6 1 

SdmOp 

-201159, 

S - 

8% 

87, 1 

Scant re 

21 413 

13% 

131, 

13% } 

Scharer 22 

287466 

21% 

21% 

21% + », i 

SctilAs 

IS 153 

323, 

32% 

32% J 

Seagate 

209101 

38% 

35% 

35% — 1 J 

Seeirgi J9a 

24 30 

22% 

22 

22 — % J 

Sooner 

wo 

52 

50 

50 —2 3 

Selbci .00 

10S537 

19 

15% 

187,+ % T 

Selcttna 22 

11 31 

287, 

23% 

237,- % T 

Sonsor JS 

31 1078 

12% 

12 

12% + % I 

SvcMar J8 

997 


6% 

67, * 

SvOofca .16 

14 288 

12% 

121, 

12% i 

EhrUed .72 

205313 

36% 

35% 

35% ~ % J 

ShvsnX 2-04 

10 371 


«J% 

50% — % J 

Shelby .24 

20 831 

18% 

17% 

W% + % I 

Shonera -16 

38 1532 uS3% 

33i, 

33%+ % 4 

ShonSo 

12 138 

14% 

14% 


SfgmAI 28 

35 225 

49% 

46% 

«j%- % 5 

SilkonS 

12131980121. 11% 

12%+ % 4 

SiUcnx 

22 912 

12% 

12% 

tti,- ,, T 

SfmAIr 

11 495 

U% 

9% 

9% - % 

Bhnpira JjtS 

8 37 

12% 

Iff, 

121,- % (j 

Sizlore 

30 709 

23 

22% 

22% — % u 

SrrttbFs 

15 40 

26% 

25% 

25% u 

SociflMtIJO 

9 193 

3ff, 

32i, 

32% - % U 

Sadydv.Mr 

IS 309 

22% 

21% 

21% - % (J 

SoftwA 

11 134 

11% 

«% 

10% - % U 



48% 



SoundW 

11 28 

IS 

12% 

12% — % U 

SftdFn 

242 

12% 

11% 

11% - % u 

GouM JO 

11 134 

25 

24% 

24% — % U 

Sovrgn .10 

231138 

J»% 

9% 

8% U! 

Sovran 1-30 

121439 

43 

42% 

42%+ % u. 

ta* 

381764 

28% 

26% 

27% - 7, u 


Sato High Low Ian Chag | Stock 


UnCoaF .50 
UFIroC JO 
UHttCr 
UMtna 
UtdSvre .72 
US Bcs JO 
US HOC .18 
US Sur 40 
USTrk -60 
US Trs 1 
USttln -34 
UnTutev 
UVbBb 1.04 
UnvFm 
UnvHft ,33e 
LIFSBk M 

VBand 

VLSI 

VM SB* 

VaHdLg 

VaFSL 

VUNfl 144 

VMm 

Vtaorp 

Vtowtis 

VHdng 

VJpont 

Vlratka 

Vodavt 

VolUnf 

Volvo 1.17a 


WD401J28 
Walbro .40 
Wat£ 1-20 
WFSLa SB 
WM88a 48 
WaMQ.tBe 
WansImUMe 
WausP .48 
WetolR 
Warner 
WBiCap 
MMFSL 
wamPb 
wmA 

WmorC A) 
WslwOn 
Wanra IM 
wton 

WIlyrJA 1.10 
Wllim»1.08 
W1BAL 
WDiuTb .72 
WmanF 
Whtdmr 

wow 

Wonhga J6 
Wyman JO 
Wyse 

- % XLDan 

- % XOMA 

- % Scot 

XkVw 

xyvsn 

. YlowFS 82 

- % ZanNU JO 
+ % ZionUi 144 

ZMdvn 


S*i H%b Low 
IHnfe) 

B 36 18% IB 
10 48 20 27% 

20 V43 B% B 
21 231, 22% 
7 128 28% 25% 
D 11 153 28% 28% 
117 4203 121, H7 a 
1 23 BOO 28% 281, 
152 9 87, 

I 14 23 42 41% 

20 BB 18% Iff, 

43 15 32 317, 

12 304 34 33% 

19 23 38% 30 
151024 9% 9% 

7 214 15% 15% 

V V 

35 74 30 29% 

ISOS 18% 15% 
58 55 u45 44% 

280847 S% 5% 

7 1001137% 38 

8 97 40% 40% 

564 37, 3% 

1784 12% 121, 

18 17B 17% 17 
18 23 24% 24% 
111 22B 147, 14% 

502 40 37 

405 4% 4% 

145 30% 2ff, 
881 51 50% 

W W 

25 842 38% 37 

13 128 231, 22% 
18 124 291, 2B<, 

0 324 30% 30 
5 584 34% 33% 
15 85 19% 19% 

17 357 10% 187, 

14 448 35% 34% 

W 28 31% 31% 
28 130 23 22 

12 114 18% 18% 
B 144 22% 22% 

14 420 157, 15% 

10 584 157, 15% 

15 286 24 23 

40 463u42% 30 
23 580 401, 48% 

141 2% 2% 

18 80 43% 43% 

21 358 62% 81% 

18 005 20% 1B7, 

17 331 34% 33% 
181447 12% 12% 

17 160 8% 8% 

1417 20 10% 

23 807 21% 21% 
1329 20% 20% 

17 1087 247, 24% 

X Y Z 

47 88 27% 27 

406 28% 27 

1351 12% 117, 

331034 14% 14% 

32 743 16% 18 
14 2017 347, 33% 
17 217 22% 21% 

13 24 48% 45% 
541102 28% 27% 


Lan Bng 

IB - % 
27% — % 
B 

231,+ % 
2S% — % 
2B% 

12 

28% — % 
87, 

41% - % 
Iff, 

317, 

337,+ % 
38% - % 
»,+ % 
15% - % 

20 %-% 
157,- % 
45 + % 
6 %- % 
37% +2 
40%+ % 
31,- % 

*=* 
241,- % 
M%- % 
37% -1% 
4 %+ % 
28% -1% 
50%+ % 


37% -1 
23 - % 
29%+ % 
30 - % 

7 » 

10 % 

18 - % 
84% - % 
31% - % 
22 - % 
«% ~ % 
22 i,- % 
19% - % 
15%+ % 
23% * % 
42 +3% 
48%+ % 
2 % — % 
43% -1 
81% - % 
20 - % 
33 %' % 
12 % + % 

l8- % 
«%+ % 
30%+ % 
24% — % 

27 

27 -1 

12 % + % 
14b 

16 % + % 
33% - 7, 

S'* 

2 B%- % 


qmiad on tfca MMdul anhawou 
and an tart trad ad pdcaa. # DaaHnga 
attapandad. ad Ex dMdaod. xc Ex acnp 
tarn, w Ex ifgbts. M Bi a!. * Price 
hi SchHBngm, 


NEW YORK 


Indices 


(aS7J.B9«MB.49,IS69.1 


4tado*trtats ia536_flOj 2573 . 59 12363 
itomavada. I* 4 - 85 **** 94 

Transport-. 951.10 *040 

litfittlM—. . 817.07 210.71 280 

wn»V»Htat> (8580.57 L 

STANDARD AND POOR’S 
Corapc»rt*I| 296.131 300.93 j 300, 


\ 1986/87 Slnoe Oomp 

High | Low" High 1 L«w_ 
IM7M811602J«M7225 ! 41JM 
(SWW7 82/1/88] S9/S/S7 1 X/7/52 


Mar. Mar. 
86 84 . 


1986/87 

Hlflto I Low 


961.19 B4BJ1 963.73 947.5 
219.71 230.06 881.33 88l.t 


86.61 88.73 


9/81*7 14/1/88 


958.21 880 J 7 

8 S8J1 

S/S/87 (81/1/88) 

8/5/97 


hi m &2l.5fu227J5 188.47 EZ7J3 T0.E 

aai.3gj 22/1/87 I 8/4/52 

lrna 8386.9 9 f83d9.3a) 

».«j 


AUSTRALIA 

All Ord. (1/1/M) 

Matala Sl Mnta. (1/KM) 

AUSTRIA i 

OradNbk Akliaa(M/1M4 

BELGIUM _ ’ 

Bruuala SE (U1I841 

DENMARK 

Oopanluiflan SH 3/1/83/) 


1879J 1B85.B 1880 J07/SA7) llOIDJ 0^/88) 
880J ffiOJ 87SJC2B/5/B7) 481.icfi/ll88) 


28BJ9 I 201.82 I 288.84 (25/4) 


UnltoSmLCHTO 

FRANCE 

GAO Qaneral (31/12J2) 
Ind "i andanca (81/12/18) 

FAZAkttan (SI/I^WV 
Co mmartbank (1/12/65) 

HONGKONG 

Hang Sang Banfcffl/7/M) 

ITALY - - . . 

Banea Com m. KaL{T972 

JAPAN** 

Nlkkal nSA/48) 

Tokyo SE Maw (4/1)88) 

NETHERLANDS 
ANPJ3PS Qenaml 09 78 
ANPJBS Induxt (WD) 

NORWAY 

Oato 8E WWh 

.SINGAPORE airmx 
Strait* Tlnw(KL ffl— ) 

SOUTH AFRICA 
JSC Gold (28/8/78) 

J8E Kldllft (28/8/7B) 


nuokh. 


34^01 346 . 0 aj MfcB 0 | 546 82 


31.17I si.se 


««' 31,46 8121 ! 25.19 BUI 824^ 

si-sSj ^ BisirA\noi74 


p. ywg- ‘‘1 16B.37I 170.77! 170.601 171 - u 8 | 

289.11} 83J.41I 33B^O| MO.Slj Saa - a5 l 3 ^;Dt 4 ^| a | g ^lOT | 

1 J Iib.ini inff M i' i "‘ M r” M I MBT 


NASDAQ 436.861 456.711 437 
OTCCOMP-i > I — 

O/VIDeND Y1BJP8 

Dow todtia*r »«»-- — — ■* a 86 — — 

-SandPIndaatrtal-J^^^. 


Mar. 13 

1 S.Q6 ~ 
Mar. XL. 
9.^3 


Mar. 6 
' a. 95 ~ 

Mar. 4 

— 

~ glTlO^ 


.B4I825J1 |_ 4(9.841 MJ7 
«7ll»Y/aOTM4rt7)lB /TOO, 
j yawago 

FaD. 87 ! (approx) 

a.Ol \ 3.66 

Fab. 26 i 


sand Pino . oc u,. Q . 

iri - ' 

ijffTijr irrr^ — 

CANADA . mar. i Mar. r 19B6/B7 

- TO R ONTO j *££■' *26* ** High _ 

!««.i fSSS %&»***> 

- SSSSlfe laird Piimiim.tianir 


4645.8H 485UB 4551J8<24rSrt7e 


188,81 j 199J7 | 288170 (18/4) 1B8J8 Dlfll) 

482.7 481.7 I 488.0 (27/5/8T) ZS8J (2/1/88) 


468J 467J 480.4 mSiSt) 287 J (2/1/88) 

117.1 ( 118.7 |1 17 A (28/5f87) | 97J (2/UB7) 


582.10 E85J9 7028(17^ ^31 .52(18; J/87) 
17BBJ 1BMJ 2278.8 (17.4) 10®UO9iBj®7) 


28BU0‘ 292827, 


I659J409/B/88 


729.12 714 J2 808 JS (IQ/8) 454.B7(2«/1/8Q 


2147BJ1 S1455.S%202fi.B(17AS7 12981201/1/18) 
MEDiTH 1989^192228(27/3/97 UQSjSoi/UH 


S78J 288.8 381 J (BJB) 240.4 (3008) 

2&4J £56.4 3B3J (19/8) 2S4J (3/3/88) 


4I8J81 419.19 lUUWAI) BUI (4/8) 


wrajo M57.7B,H82.88(afl07 863J4 (28/4) 

1B&7.B 1978 J 31212(18/1/87) 1100.1 «1/4) 
77MJ 1MU (l7(ISJtaWW7) HMJC (2/1/88 


fwtfoto 


N£W YORK ACTIVE STOCKS 


1288.022/1/17 


SPAIN 

Madrid BE mam «7J1 

SWEDEN' 

jacoPiondiFffl/W/Ml 8S7<^ 

SWITZERLAND 

8wtajBankCpn(gVUg8) B».1 

MSXapftal 1/itL (1/1/10)1 — 


22GJ2 22L8S 


18821(3/1/81) 


1(7/11) [729J7(28R/«« 


’’What’s special about these 
Danish companiesr 

ABN Bank Copenhagen Branch, Asswamtor-Soeietelet, Barclays finans 
A/S, Berhngske Tntende, BHaiben, Boliden, Buch+Deidimann, 
Copenhagen Hamtelsbank, Danish Steel Works Ltd., Danish ‘fetecom 
H itemaBona l A/S; Danish Turnkey Dairies Lid., Darmebrog Shipyard LhL, 

A/S De Danske SukfcerfabriUoer, Den Danske Bank, Domi A/S, Duracell- 
Daimon ApS, East Asiatic Co. Ltd. (A/S Det Bstasiatiske Kompagni), A/S 
BizabeBi Anten, Ess-Food, F. L Smidth & Co. A/S, Foriaget Management 
A/S, Frisks Sol Is A/S, Ginge Brand & BeUnmik A/S, Granges Danmark 
A/S, Gnmdfos international A/S, Haktorlbpsae A/S, HeUenip Bank A/S, 
HenriguesBankAkdeselskab, KradHtoraninp e n Danmark A^S. Kommune- 
data, Midtbank, A/S Nho Atomizer, Noisk Hydra Danmark a.s, NykredB, 

Price Waterhouse, Privafbanken A/S, Reirisioiisfiiiiiaet C. Jespersen, 
Skandinavisk Tbbatefcom pa gri, Statsanstalten tor Uvstoraikring, The 
Adlmtl'iecluKdagical Institute, AkfieseiskabetVanteBanlL 

They are all regular readers of the 
FINANCIAL TIMES • European Edition 

(^further inform^ about subscription rates in Scandinavia-, 
please contact K. Mikael Heimo m Copenhagen: 


5SU B88.1 918J (j/3/97) 4B7J(W88) 

4SU 437 J) 437 J(28/S/87) |24HJ 03/1/88) 


01-134441 


Chanfl* 

Standard Oil- «% + % 

B3a,T=®a w + - 


Chang* 

Stock* Cto*infl _p*» 
traded pdca day 

SfiKils ? ? 


•* Saturday March 21: Japan Nikkei (c). TSE fc). 

B— ^ vBhiO of an ladtees an 100 axeapt Bruuala SE— 1.000. JSE Gold— 
9KK.9. JSC indaatriata- 2MA aud Autralia. AH Onfbury and Mafia- 600; 
NYSE Ml Snndard and h wi-I Bi and Tomato Campona and 

Matala— UXXL Tonan ImOeu baaad 1876 and Montreal PonfoBa 4/1/83. 
tEsdudlaa booda. *400 todimiMi piua 40 UtflUas. 40 Hn a wcMa and 2D 
TtauROita. gOsud. * UnawdaUa. 























































































36 


Closing prices, March 27 


financial Times Monday March 30 1987 

NEW YORK STOCK EXCHANGE COMPOSITE CLOSING PRICES 


13 

High 


low Sack 


9/ O* 

IS*. TO. E 


Oast Pm. 

Im ihMiQm 


37 

4014 


M% AAR s 

21 'a ACT 
238* AFQ 
16% AGS 
147# 6% AMCA 

9% TO AM In 

82% 47% AMR 

12% 8 AfiX 3 

6214 28% ASA 

17% 8% AVX 
3204 281} A2P 

67 39% MXLb a 

34 a AccoWdK 
14% 9 AcmeC .40 
8% 8% Acmatsa 

23% 10% AdaEx 3.42b 

19% 11% AdmMi 24 
21% 12% AdvSyaBfc 
31% 12% AMD 
10% 5% Adobe 
20% 13% Adob pi 1.64 9.1 
21% 10% Adob pf 240 11 
18% 11% Advast ,12a 
68% S3 AMnU 276 
50% 21% AMPb a -32 
28% ®i Abmnss 38 
5% 2% Allaan 

48*i 29% AirPrds.00 

3Si 4 n AhrbFn .to 

12 7% Airgaan 

20% 17% AMaa nUBe 5.B 
17-32 % AlMoan 
28 25% AtaP pi 1-82* 8.8 

10% 87# AlaP dpt.07 &3 

108 97 AlaP pf 9.44 A9 

98% 83% AlaP pi 8.28 8.7 

27% 14% AtakAIr .16 
28 13% Atono a -24 


28% 

$4 

40 

51% 

42% 

48 

92 

24% 

20 


JO IS 23 494 u33% 33% 33*i +% 

92 28 20 403 35% 35% 85% -% 

.120 .3 11 001 39 38% 38% -% 

22 157 37 38% 36% -% 

103 9% 9 9% +% 

I 784 P| 9b TO -% 

12 395055% 83% 68% -1% 

13 77 J1 «% 10% +% 

2a 12 3881 u62% 80 61% +4% 

1.9 398 17 16% 18% -% 

2.72 as 10 SB 31% 31% 31% -% 
f 1.627 6402 85% 61% 61% -3%. 

20 20 274 31% 31% 31% 

21 34 172 12% 12% 12% +% 

4.127 Z7 7% 7% 7% -% 

15, 82 22% 22% 22% — % 

1315 38 T9 18% 19 
2.916 44 21% 21 21% +% 

5744 301* 19% 19% +% 

887 u10% 10 10% +% 

14 20% 201* 20% -% 

7 21% 21 21% +% 

J 11 148 18% 13% 13% -U 

4310 5310 68% 84 64% -2 

.7 25 1147 48 48% 45% -1% 

3J8 4636 2514 2*’? 24% 

913 5% 4% 47* +% 

1.8378 1343 48% 45 45% -1% 

18 15 135 33% 33% 83% -% 
133 11% 11% 11% -% 

1 18% 18% 18% +% 

84 1882 1882 1882 

8 26% 28% 28% +% 

87 
>30 

ZS0 95 96 95 -% 

A W 210 25% 25% 25% -% 

A 85 171 25% 25% 25% 


27% 


13% AfeCuUSM 1.1 20 24 21% 21% 21% -% 

33% Albtsna .98 1.9 17 SM 53% 51% 51% - 1% 

27% Alcan .80 20 18 3209 38% 38% 39% +% 

37 AleoSMja 26 IB 285 81% 80% SD% -% 

13 20 452 30% 28% 80% — % 

40 S3 <8% 42 42% — % 

15 78 u96 87% 04% +0 

202 24% 84% 24% 

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20 55% 66% 66% 

8.8 11 788 44% 44 44% -% 

81 200 18% 18 18 -% 

7.8 17 23% 22% 23% 

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89 14 4861 47 48% 46% -% 

80 158 9% 67* B 

205 2% 2% Z% 

5 20 26 29 

4.0 17 50 417* 4T% 41% -% 

1.20 87 4201 45 43% 44% 

405 2881 u20% 19% 20% +1 

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27 17 12 29% 

32 14 2748 SO 

01% 80 ACan pi 3 U 2 88% 

119% 113 ACan pi 13.75 12 1 114 


241* AlaxAl* 

34% Atexdr 
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X A%l (AC 
36% AlHjPw£92 
14% AltanG .56 
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33 26% AltsC pi 

47% 321* A1LTL 204 

461* 32% Alcoa 
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41% 821; Amax pi 3 
33% 18% AmHea 
1451} 82% AHes pra-50 
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31% 6% ABiCk 0 
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341# 32 ABrd (4275 
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36% 23*4 ABusPr.BO 
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ACan pi 13.75 12 


25% 21% ACap6820 
35% 29% ACapC£82e 
2 TO 14% ACMR la 
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06% 63 ACyan 188 
31% 24% AElPw 220 
81% 53% AmExpl.S 
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20 14 0171 70 78% 78% - 1% 

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1-4 40 1014 35 
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88 6 227* 

42 16 81 9% 


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52% 46% AT AT (43.64 
53 47% AT4T pa. 74 

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131} 01* AmHofl 


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28 75% 75% 75% “% 

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72 xflOO 171* 17% 171* +% 

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Starred 

starts 

SMrisrt 


.1- 


PrcCma 


432 12% 11% 12 - % Ztonr 


P / Sb 

Stock Ob E 100* Mgl TO? On Oqp 

R R 

RBW .10 20 78 5% 8 8% + % 

Ragan -12 10 TO* 19% TO* - % 

RtoBbO .72 W 14% 14% MV - % 

Rear! A 755554 617, 99% 60% -1 

Reart B z 1900 133 1® 132 + % 

RatAsfi 12 11 10% 10% 10% + % 

TOWaAMa 11 47 TO* W W - % 

Rttoey A2 21 217 13 12% 12% - % 

Rogm .12 32 ® 28% 247* 247,-1% 
Rm9cfcaA2a 13 44 16% 10* 18% + % 

s s 

SJW 1« 11 7 37% 37% 37%- % 

See* 71 9% » a%+ % 

Stoam 82 0* 4% 0,+ % 

ScMb AO 15 17 17% 17% 17% + % 

SDdCp AD 8 0 MS 163 M3 

SacCBp-oq 48 8 S% 5% - % 

SotitraQ 30 9S3c11 10 10% + % 

5 8 % 8 % 6 %+ % 

5 4 4 4 

SI H tt?* 12% 10,+ % 

175 49 1% 1% 1% 

H 148 12% 12 12% 

121 0* 4% 4% — % 

T T 

TIE 289 3% 3% 8%- % 

Til 14 324 11% 10% 11% + % 

TabPrt AO 19 2818% 16% 18%+ % 

TanCk 30 130 14% 13% 14 - % 

TchAm 5 3% to* 3% 

TcfaSya 14 91 10% 17% 17% 

TechTp 14 226 5?, 3% 0, + % 

TOM « 3% 3% 3%- % 

Taiaaph 0 3% 3 3% 

TmplEn 1615 11 010% TO, - % 

TeotAk ® 4258 40 38% 30,-1% 

Tama A8 17 348 24% 23% 23% -1 
TriSM 7 18 18% 

TitoUax 3 312 2% 

u u 

UnVtyn 17 170 11% 10% 11 + % 

UFbodA .10 44 143 2% 2% 2% + % 

UFoodB 44 7 2% 2% 2% 

Un«Pat22SI 20 10, 13% 13% - % 

V w 

Ma ! 

7%+ % 

a-% 

in +1 

Wtfrfrd 88 0, 2% 0 4 

WeHcos AS 7 a 30% 20% 20% - % 

WeflArn 2 B2 2 I?* 2 

WetOrri 34 0* 47. 0* - % 

WMbrg AO 13 4 tff 2 W% 16% 

WtMgh* IB 1083 24?, 23% 24 -1% 

WMcas 147877 4% 3?, 4-1* 

Wdatrm AO 15 8 21% 21% 21% 

X Y Z 


2% 


M%+ % 

04 ~ V 


VtAmCAOb 

13 

128 

21?, 

21% 

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21 

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04 

Vorrtt 


11 

31 

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VanpJe 

WTC 


9 

115 

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WangB 

.18 

1908 

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123 

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183 


33 3% 3% 3%+ % 


OVER-THE-COUNTER Nasdaq 


national market, closing prices, March 27 


Sd tt High Low Lap Chng 


2S% 10* Wei non. 60 42 20 59 u2S% 2% 25% +% 

44% 331, WetaMk.64 1A 20 33 43% 43% 43% -% 

50, 40* WadaFal® ai 10 3439 60?, 40, 40% -% 

30 2D% WaEll 2 KB 10 129 20% 20% 20% +% 

17% *4 wnndya .24 21 3486 IP, 11% 11% -% 

40% 34% WeatCa A2 14 18 40 30% 38% 30, -% 

65% 45V WtaPtfttAOa 34 15 400 60, 64% 84% -% 


tt% 8?a 

T?a ' 
TO* 

5 S' 

7% n, 
TO* Ft 


WstctTpAO 0 U10, 12% 12?* +% 

WCNA 2039 ?* 13-10 1AM 

WCNApI 2 8 5V 53, -% 

WxtnSL 34 11 12 1® 22% 22% 22% 

WUnton 338 3% 3% to* -% 

WtiUn pi 2 20% 20, 20V +% 

WnU p(S tt 2% 2 0* +% 

. . WnU pC 8 3 0, 3 

17 «% WUn pJA 3 9 9 8 

68 48% WaigE 140 22 15 11879071, 84% 84% -1% 

54 30% Watvc a 1 20 20 40B 52 40% 90, -P, 

59% 30% WayartO.® Z3 30 5301 58% 56% 57% -1 

13% 6% WWhPit 25 7% 7*, 7% +1, 

41% 20, Whriplsttt 28 M 8584 30* 38 30, -V 

33% 21 Wh belli 4® 81 28% Z? Z7 -1% 

35 23 WMtttk.® TAW 83 3S?« 33% 33% 

171, 8% Wilfred .12 14 12 32 6% 5% 6% -% 

23% 11?* WMcxG.15 .7 M 278 21% 20% 21% +% 

34% 17% Will land .40 A3 1141 30, 33% 32% 

7% 0, WlishrO 26 8 5% 8 +% 

17% 10* WlncMnASe 28 115 16% M TO, 

SO 30, WWXxIAO A9 19 196 48% 46% 40* -2 

20% 8 Wtrmbfl AO 14 20 435 14% 14% 14% 

B% 3% Winner 02 0, 3% 3% -% 

10% 5*, WimsrJtte Ml# 32 6% s% 6% 

84% 48% WfecEi&W 6A 11 544 51 50% 50% 

103 SO WtaE p(7.75 7.8 z8000101% 101% 101% 

60% 44% WbcFU.04 81 12 K 50% 50 ® -% 

63 44% WtocPS 3 80 12 130 50?, 50, 60% -% 

47% 31% mm a 112 2A 15 529 45% 45 45 -% 


llAitodle 
■ Auxtoal 
Avtxek 


12V 8% WOtvrW 


3f% 30* WWnh Sl 12 22 15 1963 50, 50 50 -?J 


174 10% TO* 10% +1 


7%' 2 WridAr 
19% U% WridVIn 
54 3«% Wrigiy ,104 

T% Wnrfezr 
18 11 WyMA AS 

25% 17% Wynn# .60 


78 6% 6% 0, -% 

19 18% 10, 10* 

21 20 102 51 ® 50% 

M 2% 2% Z% +% 

1 A 33 2867 a 10, TP* 18 +% 

20 14 54 23% 23 23 -% 

X Y Z 

77% 46% Xarox 3 89 20 5749 u77% 78 76% -1 

50, S5 Xe>ooc pK.45 87 H 56 55% ® 

20, 21% XTRA A4 26 18 24% 24% 24% 

21% 13% Yarktnn 23 57 20?* 20% 20, 

6 2*4 Zepeta 308 to, 3% 0, 

43?, 20% Zayre a A2 11 M 1864 29 26 20, -7, 

14% 8% Zamax AO 2A9 75 13% 13% 13% +% 

29?, 10, ZentthE 1553 25?, 25*, 25% +% 

10, 8 ZanLb a 524313% 10, TO* -% 

21 12% Zero ASIA 2D 131 13?, 18% 10* ->, 

51% 32% Zumta 1.32 2A 20 151 50% 50 50 

10% 8% Zweig ilIOb 1.0 984 9% 9% 9% -% 


SaJae figurm art unofficial Yatriy Ngha aid Iowa raflact the 
pravioua 52 weafca plus the currant week, but not ton Meat 
tracing day. Where a spot or atoefc dMdend amouratos to 25 
par c«nt or mors haa been paid. Iha yaw's MoMow range and 
Mvfdand an shown tor ton near Mode only. Urines otherwise' 
noted, ndss d dvtdanda are anal daburaemanta tanad on 
toe 


a-tovidand also attrafs). b a nnu al rata at dMdend plus 
stock dMdend o+qiidatlng dMdand. ctd-caSad. Anew yearly 
tew. A dM dand dactaad or paid to preoadtoe 12 months, p- 
cMdwid h Canactom finds, subject to 15» nonrosidenca tax 
1-dMdand daebrad after apK+p or Block dwfdand. f-dMtond 
paid tMs yaw. o mitte d, deterred, or no action taken at latest 
dMdendmssanak-dhidsnddsdaradarpaidthisyaar.anao- 
cunttto bsuo with Addends In arraars. ihmw bsua In to* 
past we afca. The Mgh-tow range begins with toe start of 
oadtog- nd-next day ddBvary. PT C price W ring * ratio, r- *4- 
dand dechrod or ptod in pfaoaTOig 12 merths, pka stock cM- 
Idend. amtoek apflt Obidandk begin with dote of spBL sb - 
[Wee. t-cMdand paid to stock In praoedtoo 12 months, asA 
matad cash vriua on ax-dMdsnd or ax-dtot rib ulion dafa. u- 
new yearly high, y-tradtng Mtad. vHn bsoifcnAncy or raoahiar- 
ship df bring- fwxgaitoad under ma Banknote* Act, Of 8aou- 
rtttes assumed by such empontes. wdrifiaMbutad. M-when 
liaauad. w w w «h war r an t * . x-«x-dMdent or aHiytt. xtfle-ex- 
kastributton. zw w tttxxrt w ar r a nt*. jr+oc-OMdand and salas in- 
biJL jld-yieid. z-aaiaa In U. 


HAND 

DELIVERY 

SERVICE 


in most of HELSINKI and parts of espoo you 
can have your subscription copy of the 

FINANCIAL TIMES 

hand-delivered to your office. 

For details of subscription rates and to check 


FINLAND 


Stock 


ADC* 15 131 19% TO, 19%+ % 

ASK 27 594 15% 14% 14% - % 

AST 12 645 M 17% 17% - % 

I 13 313 11 10% lO%- % 

Acc Ray A8 92 4 44% 44% 44% - % 

Aetmdl St 190 23% 23% 23%-V 

AdVTal 23 958 u 18% 10, 18% - % 

Aegon A 7r 1433 43% 42% 43% +1% 

AffBah 16 333 IP, 12 12 

AvMb I 28 78 24% 24 241, + % 

Agnksjg AO 1853 25*4 24% 25% + ?* 

AliWtoc M 505 10% 10% 10% - % 

AJaFdl ,12a 5 102 24% 23% 23% + % 

AicoHIt 17 210 20% 20% 20%-% 

AlexBr .16? T9 984 40 36% 38% -1 

AlexSe 1J6 16 1142 u61% 51% 51%+ % 
ANAms 41 880 14% 14% 14% 

AlegW JA 13 2BB 20, 29% 28% + % 

AJfegBv 622 0* 6% 6% - % 

AlldBn 20M 10% W% 10% 

Altos 314 141, 14% 14% — % 

Amcast A* 11 168 12% 12% 10 2 - % 

AW4M 361347 10% 10% 10?,- % 

ABnlcr A 7 B® 14% 14% 14%+ % 

AmCarr 101454 10% 0* 10%+ % 

AraEcei M 111 17% 17% 17% 

AGroat AB 14103830% 29% 29%-r, 

AmHKh M 233 17% 17 17 

AmlnLf AO 10 322 14% 14% 14% 

Amlntg 8 1M 6% 9% S%- % 

ANHns 1A2 5 1W 41% 40% 40% - % 

ASvNY.ISa 71013 18% M% 18%+% 

ASvWA .IOr 6 1® 16% 18 M - % 

AmSod.Ma 22 528 29 ’ 27% 27% -1% 

ATvCm- 61 292 22% 22% 22% - 

Amrtar 1.76 121037 51% 50* 50%- % 

Amgen 5823443 40% 40% 40%+ % 

AraakBk A8 9 148 22*, 21% 21%- % 

Ariosto 13 291 12% 11% 11% - % 

AiWhGs 08 1328® 23% 22% 221,-1% 
AfldvSvJOe 2® 20 19% 19% - % 

Andrew 19 6® 18% M 18% - % 

Anttec* JO 17 584 23% 23 23-% 

ApogEs .12 15 170 0, 9% 9% - % 

ApoloC 722709 19% 19% 19% 

AppIBk 11 164 34% 33% 33% - % 

ApploC 275983 67% 64% 65 -2% 

ApUBio 343326 20, d2fi% 27% - % 
ApWMs 2782 17% 17% 17% 

Archive 34 749 9% 9 «%+ % 

Arbor 21 27 20% 20% 20% 

ArgoBy 28 11 22% 22% 22% 

Aahtona 20 2724 23% 22% 22% -1 

Astrosy 17 153 0, S>* 9 - % 

Atone .48 1266 12% 12 12% 

AttGLtolAD 15 141 25% 24?, 24?, - % 

AlfnFd 5 « M M + % 

AH Fin AB 7 MB 11% 10, 11%+ % 

ABFpf 1A5 108 13% 13 13 - % 

AflRaa 17 100 34% 30* 30*- % 

AKSeAr 12 138 11 10% 10% - % 


Autodsk 52 5MU»% 8B% +2 


22 94 28% 27% 27?,+ % 
19 1Z7 0, B% 0, + % 

32 798 10, M% 18%-% 

B B 

;BB 61 10 0* 0* 

IBRIriac 14 3M 14 13% M 

■BakrFn la 19 48 47% 48 + % 

BaharJ .01a 20 723 22% 22% 22% 

BkLyB AO 11 ® 22% 22% 22% - % 

BaBcp».4Q 271577 23 22% 22% 

BnRnealAO 9 31 V 37 37 - % 

BcpHw 1 JO 11 99 57 66% 57 + % 

BKMEaLU 103636 34?, 34% 34% 

Bnkaati AS 11 52 16% TO, TO, — % 

Bride* B 31 10, 14% 14% - % 

Barint AOr 32 45 33% 33% 33% — % 

Santa .44 16 948 21% 21% 21% - % 

Barrie 91312 18% 15% 16% + % 

SsetF JOB IB 4® 46% 43% 43% -2% 
BalIMt .M 514220(1321., 30 32 +2 

BayVw 616 15% 14% IS 

BayBk8lJ2 11 10 40, 42% 43%+ % 

BexutiC 9 1507 7% 71, 7% 

Beebes 16 461 17% M% 16% 

Baridya A4 151372 30, 35% 35%-% 

BerWto 337 13S® 9455 3455 -95 
BeriSys 181024 18 TO, 17**- % 

BstzlA 1.40 22 231 46% 48% 48% - % 

Big B 22 85 13% 13% 13V 

BgSaar I 13 26 23 % 23 23% - % 

BUxtty 161421 15% 15% 15% - % 

BingSv WE 181 *6% 16% M% + % 

BtoHas 400 5% 5 5 

Biogen 8141 TS 12% 12% 

Blomris 38 269 23 221, 22% - % 

BirS8 18 468 23% 23 23% + % 

BtokD A4b M 17 32% 31% 32*,+ % 

BoaiSn 1A4 11 278 43% 42% 42% -1 

Bob&ri AB 29 214 26% 25% 28 + % 

Bohama t 33 144 24% 23% 23% 

BoatSc 1 0 51 44% 43% 43% - % 

BstriV .48 15 162 34% 33% 32% -1% 
Brandi 1A8 11 94 30, 39 39 

Bnkfln AB 20 278 10* 18% TO, — % 

Brenda 16 86 M 10, t3V+ % 

BdgCn 352502 21% 20% 20% + % 

Brunos .16 254278 20% 19% 19% + % 

BufldT 17 26 19 18% 18% - % 

Bmhm A4 19 371 20 19% 20 + % 

Burras 373782 15 TO, 14% -1% 

Burrito 16 M 21 20% 20% 

BMA L10 1® 20, 27% 27% - % 

Busin Id 865286 M 1S% 15% + % 

BudcMtl J2 13 8 30% 30 30 - % 

c c 

CPS 12 35 22% 22% 22% - % 

CML 201105 23% 23 23% 

COMB* 631360 21% ?1 21%+ % 

CPIs .16 23 120 22% 22% 22% 

CPT 178 4% 4% 4% 

CbrySctAOe »x8M 41 40% M%- % 

Cadnd 401526 15% 14% 14% - % 

CalBie 710 16% M% 15% - % 

CalMto 222331 10 9% 10 

Calny .18 31 389 IH* 11% 11% 

CarnSS 555 TO, 9% « 

Canonl J4a 52 28% d28% 28% - % 
CarearC 0 7® 11% 10* 10*- % 

Csnnfcs 49 949 25% 21% 247, + % 

CarflakLlOB MM 8% 8% B%- % 

Caringtn 305 21 20% 20%- % 

Carver M 135 TO, TO, M%- % 

Casayss 28 841 19% 19% 19% - % 

Caayn M 812 27% Z7% 27% — % 

CeflCms 342 S 24% 241,-1 

CntrSc 1A0 11 62 43% 43V 43% - fa 

Contour 471 44% 43% 43% - % 

Canton 21 439 16% M M?j+ fa 

CanBcsl.10 12 52 3S% 37% 3S% 

CathS, .96 12 92 2D% 20% TO, - % 

CFUBk J6 12 474 34 32?, 32?, -1% 

CriyGm 30 22% 21% 22%+ % 

Cerdyn 13002® 13% 13 13 - fa 

CerTO 51 124 w% 14% M%+ % 

2*23 30% 28% 29% - % 

ChrmSs .12 942455 TO* 27% 27% -1% 

Chnwb 60 90 22% 22 22% — fa 

ChkPt* 16 311 70% 10% TO, + % 

ChLam AO 371111 » 4 30, 5% 

Cherries 4015® 23^ 22% 23 

CMCM 13® 7% 7% 7% — % 

CfnPac.05* 20 204 51% ®% 50? -1 

CMAto* 17 MSB 15% 14% 14% - % 

CBJdWW 17 944 «% 16 104- % 


Stock 


(H-Hsl 


Low Las* Ctng 


CM Ha 34 694 35% 34?, 35 -% 

Chiron 1267 33% 321, 33 -1 

CNtmtl.M 17 25 90% 60% 50% + % 

Chronr 356 M% 13% 13%+ % 

ChrOwt 37 24 809 14% 10* M% 

CtnnFn 1A2 12 69 70 69% 70 + % 

CfclMto .15a 11 1® 8% 8 8 - % 

Cfaitaa 34 14 67 66 68 

Cipher 0 756 18% 15% 15% - % 

CtzSoCp 1 11 1481 28V 2B 2B 

CtzPBplASa 11 381 45% 44% 44% -f 
CtzU Aa 1 21 2M 29»j 26% 28% -1 

CttyFSd AD 8 218 12% 12 12-1* 

CtFdpfBLM B9 25% 26% 23% 

Oyt.Tr .25c 111 0* 4% 4% 

CtyNCs A4 H 140 25% 25% 2S% 

CHyBcpl.12 11 45 ® 66% 68% 

CUrkJ AB 13 72 29 28%29+% 

Ootota 24 233 20% 19% 19% + % 

CoOpBMBa 46 21 21 21 

CoastF 11 216 17 18% 16% - % 

CotiSc AO 28 59 37% 37% 37%-% 

CoatS 451478 11% 10* 11% - % 

18 413 u2B 25% 26 + % 
14 38% 30, 36% 

Coeur I 2961 u25% 24% 2S»» + 1% 
Conran* 2® 13 TO, 12?,- % 

Cologne 49 84 15% 151, 15% - % 

ColFdto 391 14% 14% M%- % 

CBcgpA AO 11 31 25% 25 25% + % 

CoinGp AO 16 2® 25% 25 26 -1 

OnGas 1 AO 12 15 24% 24 2* - % 

ColoNt 74 104 15 14% M% — % 

CoiorSy 274 M 13% 13% - % 

Cranalr - 72 MO-,9%. to, 9% 

Contests 0 482 22?* 22% 22% - % 

Coterie 2A0 11 3® 58% 50« 50,- % 

CmBshatJB 10 4 37% 37 37 - % 

CrnOr 124 25 25 B 64 OS 

CrncaUs JO 121273 30% 29% 30 + % 

CmcFds 5 tt M% 17?« 177*- % 


CmIShg J8 19 46ul7i* 10* 171, + % 

CmmHo 79 10 9% 10 + % 

ComSvg.12a 163 17% 17% 17%+ % 

CmpCda M BM 16% 17% 17%-% 

CmpCra J8 21 648 14% M*, 14% 

CmprsL 19 3® 0, 5% 5% 

CCTC 221 7% 7 7 - % 

CmpPr 5036 4% 4% 4% 

Cncptts 1256 18% TO, 18% 

ConcCm 80 16 M M + % 

Conifer 1.20 W 50 39 59 SB 

CrCap2.40a 86 15 14% IS + % 

CCapS AM 120 9% 9% B%- % 

CnaPapI AO 13 202 80% 00 60% + % 

Cnfftaa 48 263 17% 17 17% — % 

Con*0 4010 10% 0* 0*- % 

CooprO 270 1% 1% 1% -VIE 

Coopri. 40 2088 2 7-M 23-18 2%+ % 

CooraB AO 173289 28% Z7% 27% - % 

Copytsi 978 M?b 14% 14% 

Cords 1237 18% 177, 17?«- % 


Stock &*s M0 law Lad Ckag 

Pi®*) 

Mnranx <42 ' 7?* ' 7% 7% - %' 

Fhiigttn 704 W% 19% 19%+% 

FAIaBa .78 13 381 22% 22 TO, - % 

FatAmaIJO 9 53 50 48 49 -1 

FABkA.40b 13 « 12% TO, 12% - % 

FtAHn la ? to 67 65 68%+ V 

FtATn 1 12 304 29% 28% 20*- % 

RAmSv.lOa 74 17% 17 17 - % 

FBOhs 1 AO 12 84 33% 32 30, + % 

FComCIAD 26 1 16% 16% 18% - % 

FEmp UD 10 2 98 K 96 +1% 

FExacs 104143 TO, 10* 17 - V 

FExp*EZ12e 41 24?, 24% 24%+ % 
FExp02A8 34 Z7V 20* 271, + % 

FExptB 12® 22?* 22% TO* 

FFMto A2B 422225% 24% 24?,-% 
FFdlCd 3 287 20, 0 27% -1 

FFRMs .40 7 U 28 25% 26% 

RFKalAla 26 93 W, 19% 19% + % 

FtFdSC I 11 268 12 11% 11% - % 

FJFnMg 36 BB7u3S% 33% 34 - % 
RRBk .72 12 119 34?* 3^ 34% 

FtHaws JO 13 482IA0* 28% 29%+% 
FlflCps AA 19 321 16% 16 M% 

F Jerri 1J0 1233454% 54% 54%-% 

RKyNB &4 12 578 27% 20, 0 + *4 


1 13 82 34% 34% 34%+ % 

FNCtonlAB 13 19 42 41% 42 

FPaoFn 9 29 24% 24% 24%+ % 

FISFIa AO 30 292 39% 38% 38%+% 
FSccC 1.M 63 71 28% 25% 25% - % 

RSttm 4 379 15% 143, 14% - % 

FTanml.16 » 342 33% 32% 32% - % 

FsUCa A8 113149 20* 28% 2B% + % 
PtVriya J4 12 4* 28% 28% 2B% - % 

FtWFn A8 5 589 10% W% 10% - % 

FtaFd 379 14% 13?, 13?,- % 

RaTOs -44 M30« 23V 22% 22% - % 

|Ftow8y 225 ® 4% 4% 4%+ % 

Fonar 25483B 77* 7% 7%- % 

RJoAs A5 44 269 143, M% M% - % 

HJoBa .04 51 227 18 15% 15% - % 

For Ant AB 0 77 39V 38% 38% - % 

ForlnF.lOe 6 SO 27% 27% 27%+ % 

Forum* A6 Mill® 8% d 5% 0*-% 

FreaFd .40 10 1 15% 15% TO, - % 

Frenmt AO 12 373 10, 19% 19% 

8 738 6% 6% 6%+ % 

FtdlHB 38 Z7B 33% 83% 33% + % 

G G 

QWC 132 M 15 22 21% 22 

Galacg 3299 0* 0* 69-16 + % 

Galileo 24 101 34% 34 34 

QaigAs AO IS 129 24% 24 24% ♦ % 

* ■ 17 805 12 11% 11% - % 

Garina 28 227 23% 23 23% + % 

GatwBa t2 210 25?* 25% 25% - % 

GtwyMa MB 4% 43* 4%+ % 

GrancH M 68 0, 7% 7%- % 

Ganatea 3757329 61% 80* BO -1% 
Gened n 1B28u42% 41% 43% +1% 

GawnsrABe 15 242 11% 11% 11% 

CoreSt 136 11 3160 40% 38% 40V + % I Gartrym 1425251 14% 14% 14% - % 

Conrua 61862 13-18 11-16 %-1-M GtoanG AS W 1194 TO, 20 20%+ % 


992005 M% 10* M?, - % 
» 98 8% 8 8% - % 

M 3957 8% 7% 7?,- % 

5 114 24% 20* 241, + % 


98! 405 TO, M% + % 


% 

23 %-% 
M + % 

59?+ % 


QrpSem 

DBA 

ONSvga 

DMA PI 

DSC 

DaiaySy 

DmnBJo 


Crfenc 
CrzEda 
Cronus 
CraaTr 

CrasidS AO 11 823 17% 17% 

Crostpf 131 143 23% 23% 

CwnBfc 20 228 M 15% 

CultnFr 30 74 13% 13% 

Cdhim 30 17 351 27 26% ZIP, 

Cypres 981161 Z7 26% 2B%+ % 

‘ “ 463834 11% 10% 10, + % 

D D 

17 782 19% TO, 19% 

5 61 TO, 16% TO, 

MSS 177 14% 14% 14% + % 

263245 7% 7 7%+ % 

912 10% 10 10% + % 

1987 9 8 8%+ 7* 

DertGp .13 14 2 171 T71 171 +1 

Datord A4 19 125 12?, 12% 12% 

DtriO 23 559 10% W% 10% - % 

34 52 S3 TO, 32% - % 

DauphnfAO tt 69 34 33% 33%-% 

Dayalns M 290 M 13% 13% - % 

DabShp 30 24 44 TO, 38% 30, 

Dehrib 25 21% 21% 21%-% 

47 20% 19% 20% 

DapQ£yl32 9 103 »% 33 39 - % 

Derby .QSe M 47 24% 24 24 -1 

DlagPr 36 31 38 37% SB +1% 

Dfatooc 3322® 3 215-16 3 

Dtorri 38 11 2 30 30 30 + % 

29 646 38V 38 38 - % 

DlgeCm 18 4® 36% 35% 30, - % 

Dfcjfch 680 6% 6% 6% 

DfaneNV 61907 24% 24 34 - % 

Dtonexa 35 229 31% 30% 30% -1 

DfrGri AO 49 434 11% 11% 11% - % 

Domes .72 10 1382 21% 20, 21 + % 

DresBs 34 611 35% 34% 34% + % 

Orators 282 TO, 13 13 - % 

OreyGr 21 2® 17% 16% 17 

DunkDn 32 19 374 31% 31% 31% + % 

DuoSys 24 307 28% 27% 29% 

Durtm 14 178 12% 11% 11% -1 

DutomsIJS 11 34 44% 44% 44%+ % 

Doriron 36 27 6® 13% 13% 13% - % 

DurFII .18 16 64 12% 12% 12% 

Dynsen 11 361 M% 14i* 14%+ % 

DytohC 18 077 35% 34% 35 + % 

E E 

EMC Cp M 731 25% 22 22% -2% 

EMCtn AS 11 25 10% 10 ID - % 

EstnBca.100 T3 1M 24% 23% 24% + % 
Bumfs 21 3 12 12 12 - % 

QPas L® 8 3® 19% 19 19% + % 

Elan - 764 792 u22% 21% 22% + % 

EJecBIO 15 389 7% 7 7 - % 

as 4% 4%- % 

115 11% M% M?,+ % 


ElCath 

EtoNud 

BcRn* 

Emulox 

Eftdtm 

EngCmr 

EnFact 


17 SB TO, M?« 10*- % 

M 470 77* 7% 7% — % 

®4208 17* 1% 1% 

393 25 24 24% + % 

11 336 12% TO* 12%+ % 
BriPub .10 17 1042 u19% 18% 1B% + % 

Errvrdn 15 131 31 90 TO, - % 

ErrvTrt 175 31% 30 30% - % 

EnzBto t 485 11% M% 11% + % 

Equal 2® 0* 3% 3% - % 

EqScaJOb 12 42 29 20* SB + % 

EqOBa JB M 44 22% 22 22%+ % 

ErtoTTIAee 191342 42% 42% 42% - % 

EvnSut 27 91 36% 36% 35% -1 

Evans A4 17 233 12% 12% TO*- % 

Exovir 110 18% IB 16% - % 

Ejqjtos 22 264 15?* 15% 15% 

F F 

FFBCpASa U 704 171, 10, 10* 

FMI A2a 4 19 13% 18 13 - % 

FrmHmJOa 8 640 24% 24% 243*- % 

Fanrf 19 123 15% TO, 15% - 1* 

fcndp3L20 18 1577 <8% 47% 48 — V 

FedGrp 171069 3% 4% 5 + % 

Fitter 1A0 11 279 42 41% 41% - % 

FUferpf 8 38?* 36% 30*- % 

FttthTs 1A4 13 64 57% 57 57% - % 

FiggioB .78 13 K 86% « 66 - 1% 

FiggtaA A8 212 75 73% 73% -1% 

FmNwS SB 617 12% TO* 12%- % [ 


Godfrya 32 21 MB 20, 28 20, 

Goodnric 25 463 16% 10* M 

Gorins 34 12 978 28 27% 277* 

GouidP JB 22 290 20% 20% 20%-% 


Graded 

GtphSo 


AO 
GWSav A8 
GmRfts 


QuarNt 


ICO 

HMD 

HPSC 


HamOH 


9 201 0* 8% 8% — % 

®8 8% 8% «%+ % 

SI 21% 21% 21% 

4 2M 20* 25% 25% - % 

18 12 12 12 + % 

20 2® 10* 13% 13%-% 

30 MS 2Z% 22% 221, 

16 706 7% 7 7% — % 

74 10% M M%+ % 

H H 

1212 9% 9% S%+ % 

241 0* 8% 6% - % 

M » 13% 13 13% 

25 8® 8% 0 4 8% — % 

54 281 n19 18% 16% + % 

Hartvln JB 11 120 731* 72% 72% 

Karivya32a 5 832 18 17% 17% - % 

HarpGa M 782 17 18V 17 - % 

HriMtalAD 101134 29% 29% 29% + % 

HrtfeJSa IAS M 414u® 88 68% + % 

Kanin 16 277 28% 28% 20, 

HfthCS 38 2M M 13 13% 

HUhco 6 10 24% 24% 24% - % 

HTthdyn 11M 4% 4% 4% - % 

VtohgAa .16 231206 21% 21% 21%+ % 

Keeton 13 756 Zto, 28% 29% - % 

Henley I 7020 20* 28% 28% 

Hlbere 1 M 157 27 20, 20,-% 

HtgWSu B 04 15% 15 15%+ % 

Hogan 893 10, 16 10, 

HolmD JO 230 85 23% 23 23 

HmeC*y 10 88 21% 21% 21% 

HmBan 1 11 30 38% 39% 39V + % 

HmFFl AO 143 38 34% 34% -1 

HmoSLa 5 156 25% 25 25 - % 

Horind JO IB 99 46 44% 45 

HBNJs .Id M 182 23% 23% 23% + % 

HuriJa .M 28 254 30 29 29 - % 

Hntgtna 122 20 TO, 19%- % 

HuntgBJ4b 10 123 28 27% 27% 

Hyponx 15 107 13 12% 12% - % 

I I 

1USB .18 33 1482 30% 29% 20, - % 

SC 151997 10% 10% 10% - % 

too* 21 905 12% TO, 12%+ % 

(maim 985 3% 3% 3% - % 

bnunex 3123u20% 19% 19% - % 

imreg BZ7 12 11% 11% - % 

IndBcs 1.06 11 221 31% 0 31% 

MNn.lOb 11 64 37% 87% 371* - % 

4 TO* 15% 15% - % 

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40 500 12 11% 12 - % 

83 122 10% 10 10-3, 

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47 301 16 15% 15%+ % 

113 8% B% 0,+ % 

81M20 16% 10* TO, + % 

305 13 12% «%- % 

29513(142 40 40% +1% 

4140(114% 10, 10, +1% 

15 173 0, 8 6 

17 85 24 23% 83% - % 

183507 23% 23 23 - V 

1753 14% 14 W%+ % 

““ — ' 14% - % 


Stock Ue mg Ira LM Gto 

IKeto) 

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Jond A_15e 33 7® 16 14% 15% +1% 

Juno 22 3i 3S 38% 38% - % 

Justin .40 12 91 TO* 15% 15% - % 

K K 

KLA 40 UO* 20* 221, 22% - % 

Kb man A2 29 193 30V 29% 29% - % 

Karchr 29 B34u21% 21% 21% + % 
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Kemps AO 112117 57 38% 30, - % 

KyCnLfl.M 9 353 53% 52% 60, - % 

KeyTm Ml 0* 7% 7%- % 

KbKrid 17 314 14 13% 13% 

Kbtdare AB 27 1737 17% 10, 17 - % 

Kruger AO 191579 20?* 20% 20% - % 

Kutoka 448 13 12% 12%+ % 

L L 

LSSJ 20 72 M?* 14% M%- % 

LAI Lg 1833312 W% 10* 10,+ % 

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LaPsriS 38 129 19 TO, 18% - % 

LaZ By 1 JO 15 31 M 70* 79% 

LadFre.12a IB 519 21% 21% 21% - % 

Latdw 30 28 4BS 24% 23% 23% - % 

LdTBs .M 32 183 20% 20* TO, - % 

Lancs* 34 44 519 22 0% 21?* + % 

Lance LOB 20 90 43 40, 421, - % 

Lane -80a 1937U7 87% 80, 65% 

Lawsns AS 20 5® 26% 28 26 

LesDta 253573 8% 8% 8%- % 

LdaCns 2*8 7 6% 8% - % 

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LinBrd 3SWJ05 72 80* 60, -2 

LnFfma 183488 M 13% TO* 

LbOaa AS 332468 uCBI , 85% 65% -3 
LonaStr 28 547 10* 13% 13% 

LongF 1AD 17 984 74 70% 71% -1%, 

Lotus* 21 T6M2 22% 21% 22 

LaBnch 300 23 0* 0, 9 + 

Lypho 52 MM TO* 28 26 - ^ 

M M 

MB 16 5% 47* 4?,- I, 

MCI 25 8235 8% 8% 8%~ 1* 

USCar 20 10 32% 32% 32% 

MTB AB 120 37% 37% 37% — ?* 

MackTr ®i »% 18% M% 

MadGE238 12 90 36% 3S 35 - % 

UagmP 1525787 15% 15 TO, + % 

Magnai A8 122491 TO, 24 247*+% 

MatRt M4 11 10% 11 

Makta A50 52 37?, 371, 371, + % 

MgtSd 18M07 18% TO* TO, - V 

Manitw JO 212 20% 19% 20—1* 

MfraNl 1A4 9 474 48% 46 40* 

MameCIAfl M 22 44% 44% 44% 


MarahlsAO 

11 

413 

33 

321; 

33 + 

fa 

MtuldMia 

8 

856 

<n» 

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«%- 

% 

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47 

225 

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8% 


Uacofa 

40 

882 

33% 

32% 

33*, - 

fa 

Masswr 


57863-18 

S 

5 - 

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MatrxS.tOa 

2D 

719 

43 

42% 

43 


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114 1811 

15 

14V 

TO, + 

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Maxbs 

2B2003 

30 

28% 

28%- 

% 

McCrm 1 

19 

MB 

*% 

<0* 

48 - 

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Modatat AS 

7 

8 

20% 

20% 

20% 



InUBdc 

IrioRss 


toahE 


mar 
I nst n a ts 
IntgDv 
intgOan 
Intel 
IfflohM 
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MKhig 

MAW 

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Intrwst 
tovdSL AO 


btonoc » 330 10, MV 14% 

btontOs .18 18 234 10, 15^ 16% 

IntCttn 301023 14% M% 14%-% 

2A 105 30% TO* 30% 

48 1<% M% 

13 77 IB 17% 17% - % 

» 162 21% 20% 30% - % 

638 10, 12% 12% - % 

a 131 12% TO* 12%+ % 

41 502 17% T7 17 - % 

8 «7 10* 147. 14?* - % 

MZ075 5% 4% 4% ~ V 

Itol&SciS 2 12 81 33 32% 33 + % 

R8I 71690(120% 10* 20%+ % 

IktYdcdSBr IB 06 95% 95% +1 

J J 

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•tacor 178 7% 7% 7% — % 

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■torieo .M 191171 20* 25% 25%+ % i 


Medar 83 8% 7% 7% - % 

UratooaMB 77 497 48% 40, 46% + % 

Medf i d « 18% TO, 18% - % 

MedShs ® ® 24% 24% 24% + % 

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Ualtoi|PL07B 17511% 11 11 - % 

Mrirdgs M 4® 10% Ml, 10% 

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MrdnBs 1 M 844 25% 24?, 2b - % 

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MaryG 19 183 23 22% 22% - % 

MMAirs 12 212 7% 7% 7% 

Metrfa 8 IS 24% 24% 24% 

Manri a 111 30% 29% 20* - % 

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MtorTc 1913 7% 6% 7 + % 

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Mtonft 4197 u93% 8S% 91% +2% 

MdStf=d AO 11 0 TO* M 26% + % 

MfcUCp 1TO 10 602 49% 49% 49% 

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MHkHr .44 161243 23% 20* 23%+ % 

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Ml riser 24 8322 15% TO, 16%- % 

Minster 402557 23 21 23 +1% 

MobtCA SB 287(127% 20, 26% - % 

MobtCB 70 400uZ7% 20 SB - % 

Medina .78 52 111 32 31% 31% 

Mo lack 413 7% 7 7% 

Mom SO 31 303 60% 60, 50* -3% 

MoriCIJOa 340 78 77% 77% - % 

MonAM 1243 5% 48, 5% + % 

MOTH*! 312788 15% 14% 14% 

Moorf 130 120 26% 28% 28% + % 

UorgnP 23 412 30 20* 29% - % 

MonanASb 21 1® 28% 28% 28% - % 

Mosel ay 454 4% 3% 4 

Mritbk 32 12 338 TO* 22% TO, 

Uttrih 112 55% 55% 553, 

N N 

NACRE 196 31% 31 31 - % 

NEC A3e Ml 507 ®% 54% 54% +1% 

NBnTax .06 131 9% 9% 9% - % 

NMCtystAO 9 653 32% 31?, 32 - % 
NCmNJ3» 18 » 155 145 16B%+11% 

NiCptr 3D 173552 14% 13% 14 - % 

NEtara .44 22 796 25?, 25% 25%-% 

S27 3fi 0, 3% — % 


23 37 17% 17% 17% 
“ “ 16% 15%- 


NUPzas 

MwkSy 259850 IB 16% 15% - % 

NE Bus AS 23 99 24 23% 23%-% 

NHniBs AB V) 09 25 24% ZS + % 

NMUSB 1 S12 27% 27% 27% - % 

NYMra M 141 21 20 20% - % 

NwfdBk 30 a 199 a 29% 28% -1% 

Newpt A6 221279 14% TO, 13%+ % 

MwpPh 909 8% 8 8 - % 

NOW B .40 188206 18% 10, 18% - fa 

Nobel AOr 19 169 M% 14% 14% - % 

Nordsta ® 30 WM 57% 54% U -2% 

NnkBs 2® 36% TO, 90,-1 

NoFkSa AO 13 53 22% 21% 21% - % 

NsficpiAO 13 4 a a a -1 

NestSv B 548 247, 23% 24 - % 

Noims 32 13 703 421; 40, 42% - % 

NoSdoSv 55 21% 21% 21% - fa 

NwNG 13 13 16) 3 22% 22% 

NwNU J8 B 696 27% 28% 28% - % 

NWPS Z40 11 3< 341* 34% 3<% - % 

282S 15% 14% 14% - 1* 

22 22% 22 22 

STB 9% 9% BV- % 

<rai1u48% 44% 47% +2% 
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Numrc JS6 M 345 23% TO, 23%+% 

8 214 6% 8% 8% - % 

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56 238 5 4 15-18 4 15-18 +1-M 
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NovaPh 

NwPwJBS 

NxPwt® 

NovaH 


Nutted 


Continued on Pftge 35 






CURRENCIES, MONEY & CAPITAL MARKETS 


FOREIGN EXCHANGES 


Mice threaten to overran Japan’s cat 


by Cofin Mill ham 

DEALERS BEGAN to question the 
strength of the Paris currency 
agreement last week There has 
been a reluctance to put down- 
ward pressure on the dollar since 
finance ministers from six of the 
major industrial nations met in 
Paris last month, for fear of pro- 
voking the big cats, in the shape of 
the central banks. But last week it 
appeared there was only one cat 
with any claws and be was finding 
no friends among the others. 

This gave encouragement For 
the mice to come out and play 
again. The cat with claws was the 
Bank of Japan, but some frantic 
action last week threatened to 
blunt bis effectiveness, and the 
rest of the group were only pre- 
pared to give token support 

Japan has several problems. 
Firstly, when the Group of Five 
agreement was signed in New 

£ IN NEW YORK 


ISput 1*080-1*090 1-6010- 1.6020 

1 month — 0.46-0-45 pm 0.48847 pm 

3 morons 1J1-L28 pm 1_28-1.25 pm 

12 months 4*34J3|»» 4.1P-4-0P mn 

Forward premiums and cfixoonu apply m the 
US. dollar. 


Financial Time* Monday March 30 1981 

■i RENDEZ-VOUS 

■with 

Hi THE FUTURE 

23-24-26^^*1987^ 


York in September 1985 the mar- 
ket was not prepared to argue that 
the dollar was overvalued. This 
time it is not convinced about the 
justification for the Gronp of Six 
Paris accord. 

There is therefore much more 
likelihood the market will chal- 
lenge the Paris agreement, and 

especially if the central banks do 
not appear to be whole hearted in 
their commitment to stabilise the 
foreign exchanges. 

Secondly. Japan maintains a 
very large trade surplus, while the 
US has so for failed to reduce its 
even large trade deficit, in spite of 
18 months of a steadily weakening 
dollar. 

The Japanese trade surplus in 
Februaiy rose to $8.14bn from 
S5.70bn in January. Exports rose 
to S16.74bn from $14.65bo, and 
imports fell to $&61bn from 
$&94bn. 


Mellon Bank pointed put that 
the trade surplus was the largest 
for Februaiy on record, and also 
noted that Japanese exports for 
car components to South East 
Asia jumped sharply, and that 
many of the cars produced will 
find their way to the US 

Thirdly, there is the question of 
restrictive trading practices, caus- 
ing growing friction between 
Japan and the western industrial 
community. 

Mrs Margaret Thatcher, the 
Prime Minister, admitted in the 
Commons last week she had 
received no reply to the letter sent 
to the Japanese Prime Minister, 
supporting the Cable and Wire- 
less attempt to enter the Japanese 
telecommunications market 

Japan's efforts to keep foreign 
competition out of its telecom- 
munications market also caused 
concern in Washington, where it 


STERLING INDEX 




Mar. 27 

Preulom 

8-30 

on 

72J 

720 

9.00 

am 

72.0 

71.9 

10-00 

am 

72.0 

71.9 

LLQO 

am 

72X) 

713 

Noon 



71.9 

72 J 

2.00 


72.0 

72 2 

2X10 


71.9 

7 22 

3-00 


713 

72 2 

4.00 

pm 

71.9 

72J 


EMS EUROPEAN CURRENCY UNIT RATES 


Belgian Franc 42.4582 42.9905 +1.25 +0-a 

Oanlsti Krone 7 £3212 7.82194 -0.38 -0.71 

German O-Mark 205X53 2-07606 +0.85 +0.4; 

French Franc 6.90403 6-90808 +0-06 -03 

Dutch Guilder 231943 234340 +133 -0.6 

Irish Pont 0.768411 0.777104 +103 +0T 

Italian Lira 148338 1478.92 -031 -03. 

Changes are for Ecu, therefore poathre change denotes a weak currency. 
AdpsUnetrt calculated for Financial Times. 



Curruucy 

■%, change 

% change 



from 


against Ecu 

central 

ad lusted tor 

raws 

Maroh 27 

raur 

terorgence 

42.4582 

42.9905 

+1.25 

+0-85 

7 £52X2 

732194 

-0.38 

— 0.7B 

2,05853 

2-07606 

+0.85 

+0.45 

6.90403 

6.90808 

+0-06 

-034 

231943 

234340 

+1.03 

-0.63 

0.768411 

0.777104 

+133 

+0.73 

148358 

1478.92 

-031 

-031 


limit % 
- 15344 
± 13404 
+ 1.0981 
± 13674 
±13012 
± 13684 
±43752 


EXCHANGE CROSS RATES 


CURRENCY MOVEMENTS 



Bank ol 

Morgan 

Uarch 27 

England 

Index 

Guaranty 
Change*. % 

Sterling — — 

U-S. Dollar 

71.9 

102J 

-223 

-52 

Canadian Dollar 

793 

-03 

Austrian ScMIfing 

137.9 

+ 102 

Belgian Franc 

1003 

-43 

Danish Krone 

933 

+36 

Deutsche Mark 

146.9 

+21* 

Swlc Franc 

171.4 

+22.0 

Guilder 

1345 

+143 

French Franc 

7L.7 

-12* 

J k) 

483 

—16-8 

Yen 

2163 

+61.4 


M».Z7 

£ 

S 

1 DM 

YEN 

l F Fr. 

S Fr. 

H FI. 

Lira 

C S 

B Fr. 

£ 

S 

L 

0*24 

1*03 

1. 

2.923 

1823 

2368 

147.7 

I 9.725 
1 6867 

2435 

1519 

3303 
2 860 

2082. 

1249. 

2892 

1305 

60.4S 

37.72 

DM 

YEN 

0342 

4324 

0549 
1 6.773 

1. 

1234 

81-01 

1000. 

3328 
| 41.08 

Qgra 

1029 

1230 

13.95 

7122 

8792. 

0.716 

8837 

20.68 

2553 

F Fr. 
S Fr. 

1.028 

0.411 

1*48 

0.658 

3005 

1200 

243.4 

9723 

10 

3.994 

2504 

1. 

3396 

1356 

2140. 

8548 

2151 

0859 

621* 

2483 

H n. 

Lira 

0303 

0.400 

, 0.485 
0.770 

0885 

1.404 

71*9 

113.7 

2945 
1 4*72 

! 0-737 
| 1270 

L 

| 1587 

6303 

1000. 

0*34 

1805 

1830 

2984 

C$ 
8 Fr. 

0.478 

1*54 

0.766 

2*52 

1397 

4835 

I 1132 
391* 

4*48 

1689 

! L164 
1 4828 

| 1578 
1 5.463 

994.9 

3443. 

1. 

3.461 

2889 

100. 


Morgan Guaranty changes: average 1980- 
Z9B2 = I00. Bank of England Index (Base average 
1475= 100/ 

CURRENCY RATES 



to* 

Special 

EuRBeoa 

Hra.27 

rale 

Drawing 

Cinrescy 


% 

Rights 

Unt 

Sterling 



0.796194 

0.709077 

U5. Dollar . 

55 

127830 

123807 

Canadians — 

754 

* 

1.48632 


4 

163838 

145900 

Belgian Frond . 

8 

482523 

429905 

Danfeh Krone _ 

7 

8.77993 

782194 

Deutsche Mari 

38 

M/A 

207606 


4*? 

2*3008 

234340 

Finch f’finc, - 

91* 

7.75155 

6.90808 

Italian Lira — 

12 

N/A 

1478.92 

Japanese Yen . 

Zb 

190337 

168491 

Norway Krone 

8 

8.77930 

780658 

Spanish Peseta. 

— 

163.902 

145.900 

Swedish Krona 

7b 

8J3504 

723470 

Swiss Fr*e. _ 

35 

1.94236 

1.72929 

Greek Orach. - 

70b 

171.099 

152365 

Irish Port 


HIA 

0-777104 

*C5/5DR rate for Mar. 26; 1*672 

a 


Yen per 1,000: French Fr par 10: Lira per 1.000: Belgian Fr per 100. 

EURO-CURRENCY INTEREST RATES 


Sterling 10-1W* 10 - UP. 9V10 91J-9U 9ft-9ft 912 - 9 % 

U 3. Dollar 661, 6*6.1 6,W<i 6V6h bb±b 6V6S 

Can. Dollar 0*6% 666% 6V&6 6%6% 666% 6%-T 

D. Gander 5&-S& 5.V-5* 5ft-3* 5£-5i 5&-S/, 54-5,; 

Sw. Franc V* U-Uh 312-4 & 3 .“- 312 3»-3B 3S-3S 

Deutschmark — 3S-3k 3\4 36-3* 3V» 3H-4J, 46k 

Fr. Franc 76-7% 7H-7H 7%-8 7JJ-8,!, 7hJ-8,'„ B 464 

lUiianUre 9-10 9V10H 96-101, 912-10 912 - 9 % 10-10% 

B. Fr. <FtaJ — 7^73, 7V7* 7V7% 7V7** 74.-71* 7V71* 

B.Fr.lConJ__ 7-71* 7^-7% 7V7S 7V7S 71r75, 71 r 7h 

Yen 6V7 5fi-64 «,l-4li 4V4* 4^4 A 

0. Krone 9V10k 9V-l(Kt 10-10b 10-llPj SVIOk 10-10*2 

ifahnSCShigJ 3-3k | 3V3»* 3±-3h 3jr*, 3V3% 

Long-term Eurodollars: Two years 6V-7 per cem; three yean 7-71. per cent; four years 7V7*a 
percent; flue years 7*2-76 percent nominal. Short-term rates are call for US Dollars and Japanese 
Yen; Others, two days' notice. 

POUND SPOT— FORWARD AGAINST THE POUND 


OTHER CURRENCIES 



us 

fMb 

Hettflrads — 

.Belgian 

Denmark 

Ireland 

W.Gtmmt- 

Portugal 

Spam 

IMy 

Norway — 
France _ 
Swden— »; 
Japan — .. — I 
Austria ■ 
Switzerland.. 


13005-13070 

2090844015 

329V-3303. 

6037-60.70 

uoi-ruw* 

11)915-11)990 

291V-293k 

22437-22659 

205.02-20636 

207712-206% 

10.96^-1134 

9.71V9.95V 

UJ6V1023 

236U23Bb 

20502060 

2.432.44** 


Close 

Ok month 

% 

PJ- 

1*025-1*035 

0.48-0.45 c pm 

3.48 

28906-28937 055-0.46 c pm 

2.90 

329V3301, 

1V1 c pm 

489 

60.40*050 

17-lfi c m 

2*8 

U82VULD3 1 * 

PaM, oro ills 

-8.41 

18945-18955 

0258-40 p fir, 

-356 

29U-Z9Z\ 

li*-l% pf pm 

S.90 

22487-22581 

62-146 etfe 

-354 


20532-205.47 
2081-2082 
10.97*2-10.9812 
9.72-9.73 
lOlBWOMfe 
236V -2371, 
2050-2053 
2.432.44 


111-142 c dh 
1 w-1 Ire <fe 
3V-4*, ore <8, 
1V1VCSM 
1-lb ore db 
lir-ly pm 

9V8b*npn» 

U*1 c ptr 


151-126 pm 
151-135 pm 
3V3*.P« 
43-32 pm 
1W to 
0-7S-L00 dh 
4V4pa»; 
251-370 & 
STL-323 6s 
lpm-1 Hre 6s 
12 V13*. its 
4fo-3kpm 
2V3b<* 
3U-3 pm 

27-245, po 

3fo-3k pm 


Belgi a n ra te K far tanrert M e fr a n c s . Financial franc 603060.70. Sb-momh f o rara ddo IlM 243238 c pm 
12-month 427-457 c pm. 

DOLLAR SPOT— FORWARD AGAINST THE DOUAR 


13005-13070 

14610-14*67 

13055-13090 

20550-20650 

37.70-3734 

6466*86 

13200-13255 

140V14U* 

12830-12858 

1296-130112 

634V637ia 

6856607*2 

634^3371. 

14735-14930 

12306-1283 

15165-15245 


13025-13035 

1.46200.4630 

13060-15070 

23550-20650 
3735-37.75 
637V688U 
13230-13240 
140V141*. 
tpUKBII 14 

1298>,-129Wi 
644V68K. 
606*2-687 
63512-636 
14730-147 JO 
1282- 1232b 
15190-15200 


0.46-0.45C pm 
0L92-O34C pm 
0358.08c «s 
OJfMUAcpm 
l-4c As 
l_752.45ora dh 
0.40-037(4 pm 
80-130: dh 
11S-125C tSs 
3\-4Vb*Os 
43D470orodh 
0.70335c dh 
25O-2B0cro dfc 
025021* pm 
240-1.9096 pm 
030-025 pra 


3.481 L31-126pml 321 

721 { 240220 pm) 62B 
0-13-0,18 6s 
OSOOJlpml 104 
4-9 dh 
530-650 <fis 
117-112 pm 
270-340 As 
290-310* 

10-12 db 
1320-1420* 
240-260* 
6.90-730* 
0343.79 pm 
650-550 pm 
097-0.92 pm 


MONEY MARKETS 


Political fears halt rate slide 


THE POLITICAL factors behind A surge in the popularity of the 
recent falls in London interest Alliance parties led to fears of a 

rates were illustrated last week by 

reaction to two public opinion " 

polls. UK clearing bank base 

The Marplan and Gallup polls lending rate 10 per cent 
could be considered a disaster for __ . 

the Labour Party, but were also no since March 1S-I9 

comfort for financial markets 

looking for an early general elec- hMg parliaiII ent, creating a 

majority. This also pushed sterling down 

FT LONDON INTERBANK FIXING 

0130 a/n. Mar. 271 3 months U5. doitan 6 mowlts U3. Honan 

bld6ig r~ ~UH»~6I* _ bM6fo 1 Offers** 

7he firing rates ate the arithmetic means, rmrmfed to the nearest onesfoteemfL of the hid and 
offered rales far H0m Quoted by the market to fhe reference banks a 1130 aun. each working day. 
The banks are National Westminster Bank, Bank of Tokyo, Deutsche Bank, Bamne Nationale Be 
Parts and Morgan Guaranty Trust. 


BANK OF ENGLAND TREASURY BILL TENDER 


UK clearing bank base 
lending rate 10 per cent 
since March 18-19 

hung parliament, creating a 
slightly firmer tone in rates. 

This also pushed sterling down 


6 me nu s U5.donan 
bUb*. “j offer 6** 


to 7L9 from 723 on its exchange 
rate index, although the pound 
was little changed against the 
dollar. 

Credit conditions on the London 
money market were not too diffi- 
cult and for most of the week the 
Bank of England absorbed the 
day-to-day shortages through out- 
right purchases of bills, and on 
Wednesday absorbed liquidity 
through bill sales. 

Speculation about 8 cut in UK 

MONEY RATES 

NEW YORK 

< 4pmJ as— 

Pilmriae — — .... 7b Thrermoab — 
BwberlaMirar. ... . -7Vr7b Skmomb ___ 

Fed, fondi — — 6*, Omytar 

FcdfoidimkwromMn^. 61, T«oyor 


was suggested President Reagan, 
weakened by the arms for Iran 
scandal, would be forced to 
retaliate. 

The Senate voted for such 
action, as growing trade tension 
increased fears of a trade war 
involving the US and Europe 
against Ja pan- 

But in this context it must be 
noted the West German trade sur- 
plus rose to DM 10.4bn in Febru- 


UFFE LBM6 SILT FUTURES OPTIONS 
Strife* Call) — Last Pots— Laa 

Price Jm Sept Joae Seat 
U2 U57 1207 051 029 

114 959 1021 033 0J3 

JM BOl &42 059 053 

118 6J4 756 022 218 

320 436 5.44 0.44 156 

122 3J5 430 123 242 

124 205 327 213 339 

126 LIB 236 334 4.48 

Estimated wtarne total. Calls 3397 Pots 758 
Preriota Bar's open bit: CaOs 2X887 Rots 12326 

UFFE fTS OPTIONS 
tasfioo (cents per Ql 


ary, from DH 72bn hrjanoary. 

US officials have denied there 
is any target range for the dollar, 
and last week Mr David Mulford, 
US Assistant Treasury Secretary, 
criticised both West Germany and 
Japan for not carrying ont their 
international responsibilities. 

Tomorrow is the end of the 
financial year. There was already 
a trend to square books before the 
pressure built up on the dollar 


L1FFE US TREASURY Min FUTURES DPTI8BS 

StrUor Cans— Last Pws-Ust 

Prla Jm Swt Jm Sen 

92 820 733 000 017 

94 621 552 0-01 036 

96 4JM 4J9 034 1X8 

98 239 301 019 249 

100 U7 200 Q51 248 

102 030 136 210 400 

104 008 0*7 352 531 

206 002 026 5.46 730 

EsUwtd nkn tom, Calls 7 Pms 36 
Prarisn fey's open tat Ms 215 P*J 244 


last week. In spite of this, add 
buying of dollars for yen by the 
Group of Six central banks, the 
dollar fell to a record low against 
the yen. 

A new financial year will mean 
increased market volume and 
probably farther pressure on the 
dollar. The present mood indi- 
cates that the Japanese cat is 
likely to overrun with a plague of 
mice. 


UFFE FT-SElflO INDEX FUTURES OPTIONS 
Strike Ms -fan Pots- test 

Price Apr klay Apr May 

19000 2034 — 0-09 — 

19250 17.73 18-24 038 059 

29500 2538 1606 033 101 

19750 mi 13.99 056 L44 

20000 10.97 1204 0-92 299 

20250 299 10-24 3-44 259 

20500 730 840 215 355 

20750 552 73? 357 457 

Estimated fokm* tool, Cafe 12 PtB 4 
Pnilwu day’s open inti CaBs 192 ftio 188 


-LaVUJette- „ 

25 avenue CorwYjnCanou 

75019 PARIS 


LONDON SE US OPIUMS 
02500 (carta m a) 


Strike 

Price 

for- 

Calls— Last 
May Jdk 

SepL 

Ape. 

Puts— 

Hay 

-Last 

Jane 

SepL 

Strike 

Price 

April 

Cafe-Last 
May Jw 

U40 

April 

Pms— Last 
Mar Jane 

SepL 

130 


_ 

3030 

3050 


— 



135 



13.90 



090 

1*0 

135 

_ 

— 

2530 

2530 



— 

080 

OM 

140 

17.90 

17.90 

1780 

17.70 

025 

010 

045 

185 

1.40 

2030 

2030 

2030 

2030 

080 

080 

080 

ns« 

3.45 

12.90 

12.90 

12.90 

12-70 

030 

0*0 

080 

1.50 

1.45 

1530 

1530 

1530 

1530 

080 

080 

083 

056 

150 

10.70 

10J0 

10*5 

10.70 

030 

ojs 

050 

150 

150 

1030 

1030 

1030 

1030 

080 

086 

022 

1.42 

155 

5J0 

5.75 

680 

6.70 

Q3S 

075 

130 

280 

155 

530 

530 

530 

68* 

083 

053 

183 

381 

1*0 

1.45 

220 

255 

3.90 

150 

230 

320 

520 

1*0 

UO 

1.90 

225 

553 

182 

230 

587 

548 

1*5 

035 

0.7D 

L10 

2J0 

580 

5.75 

650 

840 


Estimated rolume tetri. Cafe 60 Pots 0 
Mk day's seen M, Cafe L320, Pets X-253 


Prariws day's i 
VofaMK 56 


mb Cafe 1386 Pms! 


PMtUUELPHIA 
02508 triti f 
Strike 


SE US OPTIONS 

trOl 

Cafe— test 


LIFFE — rDROOOLUU OPIUMS 
Be pebrta et 100% 

Strike Cails — test 


Prior 


May 

Jura 

SepL 


May 

Jone 

SepL 

Price 

Jew 

Sera. 

Dec. 

Mar. 

Jane 

SeM. 

Dec 

1400 

1985 


2030 

2030 



085 

n 30 

9380 

048 

056 

0*0 

— 


008 

0.14 

1450 

1490 

1530 

1530 

2530 



_ 

OJO 

0.40 

932S 

n 30 

038 

0-43 


088 

025 

022 

1475 

1280 

i?Jtn 

la an 

us Rn 

— 

0.05 

0.10 

0.7S 

9350 

003 

023 

029 

— 

am 

02S 

0.31 

1.500 

9.90 

1030 

1030 

1030 

— 

08 S 

015 

120 

9325 

085 

022 

02* 


035 

039 

0.47 

1525 

7.90 

7.90 

780 

830 



005 

050 

1.75 

9480 

081 

086 

rpn 

— 

056 

058 

0*4 

1550 

500 

540 

5*0 

f rm 



030 

180 

250 

9425 

080 

002 

— 

w 

0*0 

0.79 

— 

1575 

380 


3*0 

480 

DOS 

180 

L75 

340 

9450 

080 

081 

— 

— 

185 

183 

— 


PreriMs day's s 
Prerioas day's » 

LONDON 


i infc Cafe 0 Puts 0 
me. Calls 0 Puts 0 


Pnwkea day's open iec Calls 1, Puts 95 
Esdnaied ma ne. Cafe 295, Pets 60S 


CHICAGO 


20-YEAR 12% NOTIONAL SILT 
£50400 Sbrts of 100% 


ILS. TREASURY BONDS (CBT) 8% 
$100500 32ods of 100% 


March 

Close 

22447 

High 

Low 

Pit,. 

124-14 

Jura 

123-28 

124-30 

123-20 

124-20 

Sept 

123 - 26 





224-16 

Dec 

123-20 

— 

— 

124-20 


Estimated roJamr SUMO (54343J 
Proms day's aoee Ira. 25,121 (24333) 


10% NOTIONAL SHORT SILT 
OOBlflOO 6«fe e* 100% 

Owe High Low Pm. 

Mmcb 102-38 — — 202-30 

EsUnmed Votaue 0 (27) 

Prestos day's open im. 59 (64) 

THREE-WMrTH STKBUMS 

iSROROO yofots ef 110% 

Owe High Lew Prev. 

Jura 90.75 90A 90.73 9083 

Sept 90.98 9LQ5 90.93 9109 

Dec 9100 9107 9101 9U0 

Mar. 90.92 90-94 9057 90.96 

June 90.74 — — 90.79 

EsUmatrfl Volume 6,123, 04.123) 

Prratos day's open <m_ 25513, <24.6561 


FT-SE 10B INDEX 

£25 par NM iadra pefal 

Ctea Hitfb Lew Pm. 
Mardi 204.95 20600 204.90 20450 

Jura 21005 21200 21000 21035 

SepL 21455 — — 21455 

Estim ated refene 1,180, <1293) 

PrtrkxB day's epee InL (v056 15525) 


THREE-MONTH EURODOLLAR 
Slat petals ef 100% 


Jura 

Ctase 

9922 

High 

100-20 

Uar 

99*16 

Pro*. 

10023 

SepL 

96-22 

99-21 

9617 

9924 

Dec 

97-23 

98-20 

97-22 

9824 

Mar. 

9626 

96-31 

9624 

97-27 

Jar 

95-30 

9643 

9528 

97-00 

SepL 

9503 



_ 

9604 

Dec 

94-09 



— 

95-12 

Mar. 

93-17 



— 

94-19 

June 





_ 

— 

SepL 

92-07 



— 

93-09 

Dec 

91-21 

— 

— 

9223 


US. TREASURY BILLS (I UR) 

Sira pekrta af 100% 

t Cta* m#i Law Pra*. 

few 94-33 94-41 9429 9443 

fept 94-39 94-47 94-37 94-49 

fee 94-40 9446 94-36 9449 

8». W-35 94-42 9*32 9443 


SWISS FRANC (IMM) 

Sft 125000 % per 5Pr 

ChM Htah Low Pm. 
Job. 05647 05648 05608 05578 

Sep. 05689 05692 05648 05618 

Dec 05735 05730 — 05660 

liar. 05757 05755 06708 05705 


JAPANESE YEN (1MM) 

W25ra S per 7100 

Owe Wgfi Low Pm. 
Mae 05822 05825 05779 05729 

Set*. 06865 06867 06823 06769 

Dec 05909 05900 06876 06820 

Mar. 05954 05935 05920 05850 


0E17ISCRE MARK <IHM) 

DMiaS^OO S per PM 

Ckse iifoS Low PmT” 
Jone 0J536 05541 05509 05499 

Sept 05569 05572 05544 05531 

Dec 05602 05595 0557S 05563 


THREE-MONTH EURODOLLAR ()MM) 
Sira peleta pf 108% 

Oust High tew 
Jura 9336 93.46 9332 

Scot 93.40 93.49 9337 

Dec 9338 93-47 - 9336 

Mar. 9329 9338 9327 

Jwe 9334 9323 9332 

Sept 92.94 93.03 92.92 

Dec 9223 9232 9220 

Mar. 9252 9251 92.48 


STANDARD A POORS 58D INDEX 
COBMraesMea 

Latest High tew Pm. 
Jura 29750 302.40 29735 303-40 

Sera. 299.00 30525 298.70 30535 

Dec. 3CUO 307. ID 30050 30730 

Mar. 31230 0 31230 30830 


IE YEAR 2010 


For 3 daw at the uhra-mCKlerr, «Cra ^ 1 future 

arjSTJSPSff J continent ho.O <n today, change^ 

Fonha fits, titne ,n Ftance an 

look forward to 3 days of stimulating idjbatear^dacuMWn^^ 

IntonnaDorv 

Jean-Mrac tie CHAUWG W 

qip 

6? Rue de Mrrwyawd 
7S003 PARIS 
)<* 4S 62 84 58 

RdjKirafipn Fee .^KrSNBF'i^g 

2 000 FF B» mcl 
- ( r lay 900 FP tax 
twlin-wi lira lor marrvMs 
SM'iuiureams traredaiion Erajksh ftohcii 


UBOPROSPECT1VE 


CIRCULAR OF THE CENTRAL BANK OF 

NIGERIA DATED 18TH APRIL, 1984 - * 

APPUCABLE FOREIGN EXCHANGE RATES 
FOR ANTICIPATED NOTE ISSUE 
ON OR ABOUT 7TH APRIL, 1987 

N.B. THIS ANNOUNCEMENT ONLY RELATES TO CONFIRMA- 
TIONS OF ELIGIBLE DEBT RESULTING FROM NOTIFICATIONS 
ISSUED ON BEHALF OF THE CENTRAL BANK OF NIGERIA ON 
THE 18TH MARCH, 1987 AND CERTAIN OTHER CONFIRM- 
ATIONS AS PREVIOUSLY NOTIFIED TO CREDITORS. . 

The spot rates of exchange quoted by. The . Chase. Manhattan ; 
Bank. NA for the purchase of U.S. Dollars with each of the.fof- 
lowing currencies in the London Foreign Exchange Market at or 
about 11.00 a.m. (London time! on 27th March, 1987 and which 
will be applied In calculating the U.S. Dollar equivalent of con- : 
firmed claims owing in other foreign currencies for the pur-: 
poses of any Notes to be issued on or about 7th April, 1987 are ' 
as follows: • • 


Australian Dollar '...; — 
Austrian Serif IK ngs — 

Belgian Franc 

Canadian Dollar — — . 

Deutsche Mark - 

Danish Kroner 

French Franc - 

Hang Kong Dollar _ — 

Indian Rupee 

baton Lira — ~ 


_ 0.B9&5 
-.. 12.8170 
_ 37.76 
.... 13066 

13235 

6.8685 

6.0650 

73003 

—. -12.89 
1300.00 ■ ' . 


Kenyan Shillings — 

Japanese Yen 

Netheriand Guilder. 
Nigerian Naira 
Norwegian Kroner - 
Pound Sterling ~~~ 
Singapore Dollar 
Spa/jisri Peseta 

- Swedish Krona 

Swiss Franc 


„ 16-01 -. 
jaais 

2.0590 
0.7504 
. 68860 
_ 0.6228 
_ 2.1390 
128.56 

. 6.3fi20 

_ 1^206 


The date anticipated for issue of -Notes is subject to alteration. 

This announcement is subject to the terms and conditions of 
the circular. 

By: The Chase Manhattan Bank, NA |jg3 

as Reconciliation Bank 

The Central Bank of Nigeria - CHASE 


Close 

Wgh 

Low 

Proc 

93.45 

9349 

93.43 

9348 

9348 

«B52 

9348 

9351 

93.46 

9350 

93.45 

9348 

9336 

93.40 

9336 

9338 

93 21 

9322 

9322 

9325 

9381 


— . 

93-08 

92*0 

— 

— 

92*9 


Jura 93 21 9322 9322 9 

Sept. 933)1 — — 9 

Dec 9230 — — 9 

Eatmtod <otow SAZ7. 02661 
P i n tos day's open kL 21777, (223UD 


US, 7KEA5URY BONDS 1% 
S180300 Sfeds pt 100% 


100-10 100-17 100-03 100-11 


Estimated Voiome 3,910, 11.7651 
PmMss day's open int. 3484, UAOO) 

CURRENCY FUTURES 


This advertisement complies with the requirements of the Council of The Stock Exchange. 

It does not constitute an offer of, or invitation to the public to subscribe for or purchase, any securities. 


£ 33 , 000,000 


15935 15960 15900 15B95 
15630 25665 15790 15790 
15750 15775 15710 15710 
15670 15700 15620 15630 


fr-m THE 
irM BRITISH 
LAND 

18^ CCMOhNY 
Sclss PLC 


The British Land Company PLC 


bank base rates seemed to fade a 
little, in spite of surprisingly good 
February trade figures, which in 
different circumstances would 
have increased the pressure for a 
rate cut 

A reduction in base rates is still 
expected, but the market would 
like some reassurance on the 
political front The present struc- 
ture of interest rates, and yields in 
the gilt market are discounting a 
further period of Tory rule 


( Incorporated with limited liability in England ') 


7%% Convertible Bonds Due 2002 


The following haw agreed to subscribe or procure subscribers for the Bonds: 


Credit Suisse First Boston Limited 


Banque Paribas Capital Markets Limited County NatWest Capital Markets Limited 

Deutsche Bank Capital Markets Limited EBC Amro Bank Limited 

Goldman Sachs International Corp. Nomura International limited : 

Swiss Bank Corporation International Limited Union Bank of Switzerland (Securities) Limited 


S. G. Warburg Securities 


TToasray BSts and Bondi 

534 Throe ie* 

— 554 Four tear 

533 Rroyeur 

- — — ... 5.94 Scran ysr 

632 10 yew 

6-47 30 year 



Deutsche Bank Capital Markets Limited 
Goldman Sachs International Corp. 


kuuuvn 

Base rotes 

7 day Interbank 

3-montfi Interim* — 

Treasury BW Tender 

Band 1 Sills 

Band 2 Bills 

Band 3 Bills 

Band4Btih 

3 Mth. Treason ftl — 

IMtb. Sunk BUb 

3 Mm. Bank Bills 

TOKYO 

One month Bltta 

Three montii Nils 

BRUSSELS 

OneMpMli. — 

■mroe month 

AMSTERDAM 

Ouemortii 

Three moak 


Print rates 

Federal Fundi 

3 Mtfc. Treasury 8Ws 
6 MtL Treferay Blfe 
3Mtb.C D 

FRANKFURT 
Lombard _ , . 

fee mth. Interbank - 
Throe month ____ 
PARIS 

Intervention Karo 

One mtiLlnterbrak _ 
Three mouth 

MILAN 

Onemamb — , — 

Throe moam 

tHJBUN 

Oie month 

Three month 


London— band 1 bills mature huip la 14 days, band 2 trills 15 to 33 days, tend 3 biDs 34 bo 63 days 
raw band 4 bills 64 » 91 days. Rates quoted represent Bank at Engtand buyktg or saillnp rates wfth 
Hk money market. In other centres rates are generally depnsh rakes in the domestic money narfcel 
and their r rap-ctrie startles during tie meek. 


SroribgCDs. 

Local Authority 
Local Authority Bmuts 
Discoojrt JH'ket 

Company Deposits 
Ftaance House Deposits 
Treanryfiilb (Buy) 

Bank Bins (Buy* — 

Floe Trade B«s<aog) 

DdtarCPt 

SDR Uaked Deposits 
ECU Linked Depnrits 

TrMBiry Buts tsell); ww-nwrah9^ per cent; tfoee- months 9 s <pfr Bank BUS (sMIk one- 

mMfe 9J] g* Owe momte Va Ptr cmit; Treasury Bllfe Average tender rate el dtaoual 
9-3157 p-c. ECBD Fixed Finance Scheme IV ro t eron ce dote January 31 » February 27 dnchnhe): 
V>D96 per cenL ^LocdAutinrity and Oranse Houses seven days' ePUce, otters seuen dan 1 8 «d. 
Finance Houses Base Rate 12 pa- cent from Mpnpi 2,1987: Bank Deposit Rates tor srans 9 seven 
days' notice 5 per cent. Certificates of Tak Deposit (Series 6 ); Deposit £100,000 raa) okt held 
onder on month 8 per cent' one-drrw moittits 8 per cent; <Nd«i* rnomhs 8 *s per cent; sla-nine 
roemlis 8 ** per cemjnfee.12 months 81* per cent; Under £100,000 8 per cent from Mardi 1& 
Deposits held ranter Series 5 10*u per cenL Deposits wwtoswn for 6 Bh 3 per cent 


Thcrissiic price of the Bonds is 11)1% per cent, of their principal amount, plus accrued interest if anv Ann)i«»;^ t, u , 
the Counol of The Stock Exchange for the Bonds to be admitted to the Official List y ' A PP llcutl <™ has been made to 

Interest will be payable annually in arrearon 26rh March of each year, commencing on 2fith March, 1988 

Listing Particulars relating to the Bonds and the issuer are available in the statistical service of Extel Rn'mro , r - - . ' 

may be ohtained during usual business hours up to and including 1st April, 1987 from the Comnanv T«l« ltcd and«>pie^ 
The Slock Exchange and up lo and including I3ih April. 1987 from: company Announcements Office of 

The British Laud Company PLC, Credit So*®* First Boston Limited, S. G. Warbare Securities. 1vrkM.ii., « 

10 Corawall Terrace, 22 Bisbopsgate, I Knsl, B r?Av«„ie, N.A., 

Regent's Park, London EC2N 4BQ London EC2M 2PA 

London NW14QP . 


30ib March. 1987 


f^mdon EC2P 2HD 





I 

































6 


m 


Times Monday 


section bi 


March 30 1987 




Australia is approaching 
its bicentenary in the 
throes of an economic 
crisis. Robin Pauley, 
Asia Editor, looks at the 


attempts of Mr Bob Hawke's Labor 
Government to chart its way to recovery 
while trying to shore up its declining 
general ejection prospects. 



hoists 
the storm sail 


AUSTRALIA IS down but not 
under. Like a crippled ! 2-metre 
racing yacbt the Australian ship 
ol ‘ptate tein a sorry state, blown 
wildly off course by becalmed 
commodity prices and rapidly 
declining terms or trade. 

.The^ economic sails and rig- 
sing are all over the place, the 
navigation has been so erratic 
as to have almost boxed the 
compass and the vessel is 
jrallowirig in so much debt 
(A^OObn) and current account 
deficit (546 per cent of GDP com- 
pared- to 4 per cent in the US) 
that the deck is. all hut beneath 
the waves of crisis. 

But the hull is sound and the 
potential unlimited. It is going 
to be a long and arduous task to 
pump the problems out and get 
properly under way again. But 
the signs are that the correct 
course may finally have been 
charted. The danger or sinking, 
very real a year ago. has 
receded, barring storms, acci- 
dents and violent lunges at the 
helm — although the question 
lingers : is too little being done 
too late? 

Today's Australians are 
essentially pairing a hard price 
for years of complacency and 
lac k of forward planning The 
country has suffered crises 
greater than the present one in 
both the 1330s and the 1960s and 
1970s. 

But reliance on the something 


~ ^ — turn-up school of 
philosophy meant that virtually 
no attempt was made to deal 
with any of the structural dan- 
gers threatening to hole the eco- 
nomy below the water-line, 
something always did turn up — 
usually a return to soaring 
demand and ballooning prices 
for commodities — gaming 
Australia the tag 11 Lucky 
Countiy." 

So the country proceeded as 
before, paying itself more than 
it could afford, cocooning ineffi- 
cient industries in protective 
tariffs, tolerating destructive 
work practices and ignoring the 
steadily declining terms of 
trade which spelled certain 
disaster sooner or later for what 
was virtually a single-sector 
economy but which remained a 
price taker rather than price 
setter in all its primary and 
mineral commodities. 

The Australians, healthy and 
wealthy, appear this year to 
have realised the game is up. 
There is some worrying talk, 
based more on hope than evi- 
dence, that once again commod- 
ity prices will " recover because 
they cannot stay down for ever," 
but at least this time it is not 
being used as an excuse to do 
nothing in the meantime, except 
go to the beach and wait 

Politicians, bankers, 

businessmen and most impor- 
tantly most of Australia’s 16m 


Monday March 30 1987 





' M l m ■ ■ 


Mr Bob Hawke, Prime Minister, faces tough political and economic conundrums 


citizens— except perhaps 
surfing dole blud_ 

to realise the depth of the 

culties and that the only people 
Who can grind the winches of 
recovery are themselves. 

There are signs of a new spirit 
in the country. Deregulation of 
most financial markets and the 
slow but steady reduction of 
trade barriers has introduced a 
new ethos of competition and 
efficiency which has even 
spread as far as looking for ways 
to break up the rigid airline 
monopolies, a fixed feature of 
Australian life. 


Business is starting to look for 
new markets and new • indus- 
tries, manufacturing industry is 
rationalising under legislative 
pressure from the Government 
Despite cripplingly high 
interest rates, new industries 
are starting to establish them- 
selves and the service sector is 
growing. Tourism, a long-neg- 
lected source of potentially 
huge inflows of foreign 
currency, is finally being 
regarded seriously as a major 
service industry. 

The difficulty in Australia is 
in reconciling the disastrous 


economic data with the way life 
looks. The cities in this, the 
world's most urbanised country, 
are prosperous, the shops 
crowded. The stock market is 
soaring to the sort of giddy 
heights which, even though it 
suggests a possible sudden hard 
lauding in a number of 
obviously inflated sectors, also 
suggests a degree of investor 
confidence not warranted by 
the state of the economy. 

Unemployment is relatively 
low at just over 8 per cent com- 
pared . with most developing 
states. Inflation at 10 per cent is 


destructively high, partly 
because of the impact of the 
collapse of the Australian dol- 
lar, which has lost 40 per cent of 
its value against the US dollar 
in the past 18 months — a source 
of national shame and an 
impediment to the endemic 
travel-lust. 

But Australia in crisis 
remains one of the safest, sun- 
niest and most attractive demo- 
cracies in the world and its 
inhabitants know it, which is 
half the problem. 

The Labor Government, led by 
Mr Bob Hawke, elected in 1983 


POLITICS AND FOREIGN POLICY 

Federal politics: a new bandwagon starts to roll 2 

Defence and regional strategies: heightened role in the 

South Pacific 2 

Foreign policy: stronger trade links with Japan sought !! 3 

ECONOMY AND FINANCE 

Restructuring the economy: a long and difficult road ahead .... 4' 

Upheavals in banking: the going gets tough 4 

Taxation reforms: now the debate intensifies 5 

Sharemarket s boom: a flood of new issues 6 

TRADE AND INDUSTRY 

Industrial relations: wage accord a success so far 6 

Manufacturing industry: investment remains weak 7 

Agriculture: farmers hit by rising costs and interest rates 8 

The mining industry: profits at last begin to rise 8 

Immigration: levels are set to rise again 9 

Bicentenary: Britain’s schooner gift to /Uistralia's youth !"!!!!!" 9 

Tourist earnings: going from strength to strength 10 

Wine exports: enjoying e ver-increasing sales 10 

aud again in 1984, started badly, squirrelling cash away for 
They ignored the storm war- future use. The federal system 
nmgs, dashed for growth and limits the government's central 
were faced with an overheating control over state expenditure 
economy, flight of confidence, but the toy statement can at 
collapse of the dollar and an least cut federal contributions 
unmanageable current account to the states as a compensatory 
deficit in 1985-86. Last year the claw-back. 
n^Q] b&dt storied. 

Public spending has been cut, * ln 

trade union leaders have August which will have to reas- 
accepted real cuts in living stan- markets again by 

darda and today have a sense of JL*" 1 rein ‘. 

realism under which they CiraciaUy, there is the general 

accept that real wages may have f i^ 100 * due some 
to fail every half year For some ^ nd April 1^8. 

years to come— -even If their of the most serious hindr- 

members are not so sure. The ad ^ nis If5^ lg tl, *. so f t 

unearned good life ofvesterdav treatment Australia needs is 
^ eoi nctolXa Inf exceptionally short three- 

rel^SfrSe iMs p^d ron m ^‘ mu V be S een 1 e . lec - 

be more determined to tackle it, ioSto ■ wheS^Utics i a 

ggagaajM s&i’S 

to en erg»es during the last year ln 

less evident, however. The timing of the election is a 

The coming months will be conundrum for Mr Hawke. To go 
crucial and will contain a num- to the country now would 
ber of important indications as capitalise on the unpre- 
to whether Australia is back on cedented chaos among the 
course, away from the drift opposition but elicit the accusa- 
to wards the status of a “banana tion of cutting and running 
republic" which Mr Keating scared before the nasty May 
deliberately warned last year spending cuts. 

mw&m 

First, there is the Mav econo- August squeezes and 

mie statement— essentially an hS?.? “ wages and 

emergency fiscal packagt-in 1‘ving standards. 

which the fiscal screw will be To leave It until early next 
tightened further both to tackle year risks being boxed into a 
the budget deficit and to assure loser’s corner; on the other 
the markets that political and hand 1988 is bicentennial year 
general election considerations and a visit by the Queen will be 
are not diluting the strength of a popular distraction from the 
the medicine. economic ills provided a rescue 

This must also tackle the team from the International 
problem of the states' expendi- Monetary Fund does not tack 
tii re levels. While the Govern- into Botany Bay at the same 
ment has been battening down time. 

the hatches the states, it turns Whenever he goes, the issues 
out, have been accelerating will be the same: taxation, 
their spending on pnblic ser- which all Australians seem to 
vices using cash gained over the 
years by “hollow-logging"— Continued on page 10 


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i 





c AUSTRALIA 2 

In federal politics, a surprising and popular force emerges 


A new bandwagon starts to roll 


CHINA 




.-.iKV'v-rt ■ 


! . V .£.v 


r .' ■**i ■■:< V 1 . .''. * - r-y' 1 


THERE IS a new force m ■ 
Australian federal politics; Sir 
Johannes Bjelke-Petersen. It is 
not clear yet, though, whether 
the prime minister or the impor- 
tant state of Queensland repre- 
sents a real wind of change or 
merely a passing breeze. 

At 76, having been in state 
politics for 40 years and a state 
premier for nearly 20, Sir Jon 
decided to enter federal 
politics, and may even hartx>ur 
ambitions to become federal 
prime minister, although be has 
not specifically dwelt on this 
possibility. 

~A deeply religious and weal- 
thy man who made his first 
money in peanut farming, he 
drew the following description 
from journalist Ms Linda Christ- 
mas in her travel boot on 
Australia, The Ribbon and the 
Ragged Square. 

“ joh despises trade unions; 
he hates the reputation they, 
have given Australia through 
their strike record ... he 
despises tariff protection which 
props np cosily Australian 
manufactured goods, particu- 
larly cars. He also hates the 
holiday penalty which the 
unions have won Tor the hotel 
and catering trades, and which 
adds 17-5 per cent on to bills at 
weekends and holidays. And be 
believes in low taxes or no taxes 
at ?ll- 

“ He does not believe in. 
Australia for the Australians. 
He wonld do away with the 
foreign investment review 
board and let everyone in. As 
for foreign aid and the United 
Nations, he is not interested in 
either. He leans towards law 
and order and has both a pro- 
nounced dislike of loud mouth 
minorities who take to the 
streets and march. 

" As for aborigines, Joh could 
talk all night on the subject 
Sir Joh’s entry into federal 
politics- began last Novemer 
when, against ail predictions, 
his National Party won the state 
elections. In the past he had 
governed In coalition with the 
Liberal Party. He won a major- 
ity of the seats in November but 
not of the vote, there having 
been some boundary changes. 

The real start of his campaign, 
however, was a speech in 
February at Wagga Wagga in 
New South Wales. He did not 
explicitly say he would run for 
prime minister, or at that stage 
even concede be would seek a 
seat in the federal parliament 
He concentrated on slamming 
** those socialists ” in Canberra. 
By socialists he was thought to 


mean not only the Labor Gov- 
ernment of Mr Bob Hawke, 
which by the standards of West- 
ern Europe can only be viewed 
as a right wing social democra- 
tic party, but also his own Libe- 
ral/National Party opposition 
partners. Indeed the thrust of 
his campaign so for seems bent 
on pulling out the National 
Party element of the federal 
coalition. He has called for 
Queensland National Party 
members to withdraw from the 
coalition (a call which they have 
prevaricated about) and he has 
tried to discredit Mr Ian Sinc- 
lair, the present head of the 
federal National Party. 

As Sir Job's bandwagon has 
started to roll be has obliged the 
other political parties who ori- 
ginally viewed his campaign as 
a tantasy and Sir Joh himself as 
a crank, to take him seriously. 

In a national opinion poll, 
taken in the middle of Febru- 
ary, 42 per cent of the respon- 
dents said they would vote for 
Mr Bob Hawke, 24 per cent said 
they would vote for Sir Joh if he 
formed a party and ran and 20 
per cent said they would back 
Mr John Howard, the leader of 
the Liberal Party, as prime 
minister. Mr Ian Sinclair, the 
federal National Party leader, 
got 4 per cent of the vote. Two 
weeks before Sir Job's vote was 
nil because his campaign did 
not exist Over a week later 
towards the end of February a 
new poll put Sir Job's total at 27 
per cent Mr John Howard, the 
same at 20 per cent, and Mr Bob 
Hawke, the same with 42 per 
cent The smaller parties lost 
ground. 

Sir Joh has gathered commit- 
ments from backers for A$25m 
in campaign funds. This in it 
self is unusually large. Hie 
amount spent in a general elec- 
tion campaign by one of the 
major parties is put at $14m. 

He has campaigned on a plat- 
form of less government, lower 
taxes and the emasculation of 
the trade unions. As such his 
drive for Canberra has echoes 
of President Ronald Reagan in 
the US. He enjoys the support of 
a group of new entrepreneurs 
who have achieved wealth 
largely as developers in 
Queensland's Gold Coast and 
elsewhere and he has tapped a 
groundswell of discontent by 
offering populist solutions to 
complex problems. 

His great popularity is explic- 
able in two ways. First Australia 
is in the throes of economic 
transition as the terms of trade 
for its primary products deterio- 



Jpn • at 78. Injecting more He Into electoral 


rate. This has meant that for 
most Australians, who have 
known prosperity and a relaxed 
lifestyle all their adult lives, the 
standard of living has fallen and 
will continue to fall. Many do 
not understand why. 

In this climate someone who 
is perceived to have done well 
for his own state and is offering 
simple panaceas to the coun- 
try’s problems is likely to be 
seized upon as a saviour, par- 
ticularly when the other parties 
do not seem to have any answers 
to the problems which do not. 
- involve painful readjustments. 

Second the coalition, having 
ruled in one configuration or 
other for most of the post war 
period is in disarray. 

'Mr Andrew Peacock having 
lost the leadership to Mr John 
Howard almost by default now 
seemed to have decided he 
wants it back. Enjoying much 
greater personal popularity 
than Mr Howard, he constantly 
sniped at the leader, and has 
hinted he might go into partner- 
ship with Sir Joh if t h i n gs get 
that for. Mr Howard, who is con- 
sidered intellectually the most 
capable man on the opposition 
front bench has not really 


caught fire as a personality. He 
is lacklustre on television and a 
does not inspire at public meet- 
ings. 

Mr Howard has now dismissed . 
Mr . Peacock from the front 
bench. 

But more than this, the Labor 
Party, by moving to the right has 
really stolen all the Liberals 
clothes. In terms of policies all 
the Liberals seem to-be offering 
is more of the same; tax cuts; 
budget cuts and new forms or 

tax es. . 

■ XlerTto the threat of Sir Joh, 
the other parties and the Libe- 
rals. in particular, have been 
putting out a steady stream of 
information showing that Sir 
Joh is not what he seems. 
Queensland, it says, has the 
largest government, the most 
sprawling bureacracy and more 
controls than anywhere. 

Policies apart, however, most 
party managers think that Sir 
Joh faces an impossibl e tas k 
The National Party is a rurally 
based party which is not truly 
national in its presentation. 
Queensland and New South 
Wales between them account 
for 23 of its 26 representatives 
and senators. The remaining 
three come from Victoria. 


To win government the coaB- 
tion must win 75 seats in the 
House of representatives. To 
become prime minister the 
National Party leader would 
thus need to win 38 seats. At 
present the Nationals hold 21 
seats compared to the liberals 
45. Thus the Nationals would 
need to gain a net 17 seats. This 
most political managers con- 
tend is an arit hmet ic 

have to win these 
seats in urban areas. He can’t 
even hold seats in urban a reas 
in his own stale. How do you 
+hink be is going to fore in Vic- 
toria and New South Wales. ■ 
Senator Graham Richardson of 
the Labor Party observes. _ 
'The Labor Party, 
has been watching all this wUh 
a certain amusement. For tue 
Ant time in some time Jfbor 
has moved back ahead m toe 
opinion polls. A Morgan Poll 
donefor the Sydney magazine, 
the Bulletin, at the end at 
Febr^y^e the Labor par^ 
47 per cent of the vote ayi ins t 
the coalition’s 45 per cesn t. 

if Mr Hawke, survives^ iew 
more months as prime mzmster 
then he will become the longest 
serving Labor party 
- minister. He most caH an elec- 
tion before April MBS. Mr 
Hawke himself, remans cod- 

S»^SS3 to ^<n» h S 

■ toe mosi talented ever assem- 
bled. In tough times for Austra- 
lia there is a widespread con-’ 

• census that impolicies of finan- 
cial austerity are the correct 
ones for the country. The gov- 

■ enunenfs accord with the trade 

unions, which has brought 
about real, wage cuts in a 
heavily unionised country, are 
reckoned to be a remarkable 
achievement _ . ... 

Still the Labor Party is not the 
natural party of government in a 
basically conservative country 
! and a third straight election vic- 
i toiy would be a record. The 
r tough decisions the government 

• must face in July when it pre- 
sents its budget could persuade 

I Mr Hawke to take advantage of 
t the opposition splits and go to 
. the country sooner rather than 
later. He is having relatively 
t little trouble with his own left 
r wing despite a controversial 
> decision to sell uranium to 
} France. But with only a nine 
n seat majority in the House, the 
l Labor Party is by no means a 
, certainty for re-election, 
t However, at the very least Sir 
s Joh has injected some life into 
g electoral considerations. 

Stewart Dalby 


» *. v ^ 










AUSTRALIA 






ANTARCTICA 


Defence and regional strategies 

Heightened role in 
the South 



** ENOW TOUR Enemy ■ i s the 
/.ordinal rule for an ef fective 
defence strategy, whet her In 
war or peace. It is an excep- 
tionally difficult rule to applyta 
Australia where a serious esheav 
nal threat is all but impossible 
to imagine. This begs the ques- 
tion; what is Austral i a sup- 
posed to be defending — arm 
against whom? , 

It is widely accepted that only 
the US and the Soviet Union 
have the capability of conquer- 
ing Australia — the world’s only 
continent comprising a single 
country with no land borders to 
any other state. It is equally 
widely accepted that neither^ 
superpower is even remotely 
likely, under any circumst an ces 
outside a nuclear conflict, to 
attempt such a conquest 
It is a long time since an 

Australian Go v er nm ent addres- 
sed the implications of this 
“lucky" aspect of the Lucky 
Country’s geopolitics, with the 
result that Australia has tended 
to follow a defence policy based 


on public feelings of insecurity 
and a belief that the. fcpunfry 
must be capable of taking its 
defence to the four corners of 
the world. - - 

The Government’s defence 
white paper published earlier 
thin month, proposes to change 
an that It has accepted all the 
substantive recommendations 
of last year’s review, by Mr Paul 
Dibb, of Australia’s defence 
capabilities, with a few minor 
and some semantic 
alterations made ‘ for political 
rather than strategic reasons. 
Mr Dibb’s phrase 14 strategy of 
’denial ” has been dropped, but 
will nevertheless be the back- 
bone principle governing 
defence poliey from now on. 

* It is a defensive policy, 
downgrading the importance of 
attack potential and the idea of 
Australia developing any 
farther substantial capabilities 
for defending itself off Austra- 
lian territory. It snow’s Austra- 
lia’s geography to dictate almost 
impossibly long lines of com- 


munications and supply on -an 
adversary and . JK? 

aggressor to £pnad«rtoe ttito 

mate prospect of fighting 
unfamilar— and . generally 
. inhospitable terrain. 

Both Dibb and the Govern- 
ment have been seaslti ve to 
public opinion and to inter- 
national commitments. 

Ainiwng h Australia has never 
been invaded to its 200 years, 
even the Japanese concluding 
that it could not be taken and 

held, Australians are acutely 
aware that they have bejen left 
battling alone. 

When Pearl Harbour was 
bombed and the British ‘Were 
defeated in Singapore during 
the Second World War, Jhe 
Australians had to hold the line 
alone in Papua New Guinea for 
three months. Previous Austra- 
lian commitments to all ianc e 
. partners also means that it has 
lost its soldiers in war (In Viet- 
nam) more recently than , any 


CDoflmed on 


„v- s’.; * 

V-~; : 

U-l— -• -• -• 

•vy.-;,... 







Financial Times Monday March 


30 1987 


AUSTRALIA 3 




Foreign policy 


gS** ? middle ■ in £?£ 

£5 

th?2rtA 0n ? Protectionism and 
the Of influence in 

Pacific, seem to have 
lejw interest to the 

£? TS rEL*** ¥ “t**- 

mmhio i?™ 18 contr ol and the 
Middle East peace nrocMs 
ronwnand ttw worR 

nfint but have less immediate 
relevance to Australia. . 

thPSZf ? !t is that Australia,' 
the mort important countryX 
the south Pacific regionThas 
been late in identifyLJ aSd 
responding to itnMrtant 

regtona foreign 

among the many small Pacific 
|SSt“ therefore lately 
n^oing offa range of potential 

£"*“ ranging frSm tfiSKg 
Soviet economic influence in 
thZ IS??® to ^e ' implications of 
the collapse of the Anzus treat? 

Mr Hayden is widelv 
wspected as a clever and 
^thoritative politician which 
makM the foreign policy confu- 
sion the more surprising. One 
reason often advanced for bis 
approach is the exceptionally 

Kn his rela tionship 
with Mr Bob Hawke, the Prime 
Minister. 

This makes frequent sojourns 
abroad more attractive to Mr 
Hayden than spending more 
time in Canberra formulating 


Stronger trade links sought with Japan 


foreign policy strategy-par- 
ti cularly as Mr Hawke himself 
leads from the front on issues 
such as maintaining the closest 
and friendliest possible ties 
with the US and Israel and tak- 
ing a firm stand against apar- 
Policies in South Africa. 

The most obvious result of 
this hiatus has been that the 
single most important foreign 
policy issue in economic 
tems-the extent to which the 
European common agricultural 
policy and the US and Japanese 
protection barriers cripple 
exporters in countries Ijke 
Australia — has mainly been 
handled by the Trade Depart* 
ment and its minister, Mr John 
Hawkins. 

But equally important A ustra- 
lia, together with other states in 
tne region, has been caught 
wrong-footed among the 
plethora of Pacific islands, 
small in economic importance 
but potentially large In strategic 
importance. The Soviet Union, 
never a slouch in spotting an 
area of influence, spotted the- 
low level of economic aid meted 
out to the islands and started to 
make overtures. 

Moscow started negotiating 
fishing agreements in the area, 
first with Kiribati in 1985 for an 
agreement which was not 
renewed last year and later with 
several other states, notably 
Vanuatu. These approaches are 
not in themselves of great 
significance but they sounded 


Plan to launch a 
two-ocean navy 


Cw ®* w * bom pqgs 2 South Wales, and the other half 

European nation except Britain ?°5lS to F T ema ? l . tle *“ Weste .™ 
tin the Falkland*!. P Australia where the chosen site 

After vternsn* * bas access only through a nar- 

SZ£$& s cbmnelbetmeB 


not be relied upon to defend the 

wh ole of the South Pacific and One vessel sunk in the chan- 
Aiistralia and New Zealand nel would trap Australia's 
would have to defend them- Indian Ocean Navy; the Navy's 
selves as part of their contribu- confident decision to overlook 
uon to overall western security, this potential difficulty under- 
.Australia accepts this and lines just how threat-free the 
remains deeply committed to country is. 
the US, which maintains three 

controversial ba ses in It was the opposition Liberal 
Australia. leader who noted succinctly; 

Australia also remains wholly “Australia's defence problem is 
committed to the Anzus treaty Australia has no defence 
and to new Zealand in spite of Problem*” 

to toX ab surd 

^ » IfighteSi rote in the SSSe of 

Sooth Pacific and in regional for ^ 

defence The map shows that ; Although the Dibb strategy of 

denial Solves initial suSten- 
tial expenditure in sophlsti- 
“J? cated defence equipment, such 
either thesouth east or south 33 over-the-horizon radar, up to 
west. Australia s foreign rela- new submarines at a cost of 

? on iT*!r«5?^fi a Aston, and a new fleet of tost 

troubled and some a^ie that naval patrol frigates 

the poor quality of the Indmie- (A$&5bo), the long-term effect 
sian armed forces is improving of ^ ^ poUc^houJd be to 
together with ^ better technol- constrain and rationalise 


together with bett^ technol- coi^gtraln and rationalise 
ogy— new and sophisticated expenditure, 
missile- armed frigates and West Given the seriousness of the 

German comtot OTbmannes economic crisis and the fiscal 
rogethttwim F-I6 airerafL austerity programmes of recent 

By 19®®i times, the defence budget has 

will not have half the capability escaped remarkably lightly: it 
of Australia but Australia has to has grown at an average 3 per 
keep a regional eye out for cent a year in real terms and 
Indonesia s future attitude to ^ ^ the current financial 
Papua, New Guinea, lor year of crisis management of 


example. 


public ■ expenditure 


There are other wrinkles expanded by around 1 per cent 
thronghout the regton-In spite in real terms, still gobbling up 
of their vehement denials A is 24 per cent of GDP. 
clear from published satellite n 13 to escape the 

photographs that the Sonets are knife in the May expenditure 
creating a considerable naval statement to be made by Mr 
force base at Cam Ranh Bay in pa U i Keating, the Treasurer. 
Vietnam. Tensions among Paei- Defence expenditure is now 
fic islands have resulted in expected to be pegged as a pro- 
occasional fishing agreements portion of GDP, meaning it can- 
with the Soviet . Union- — not grow unless the economy 

Vanuatu, for example— and dis- grows. 

niw ml® “>5 . WK 1 „„ w 


expresses itself in anti-French 
sentiment over New Caledonia's 
unsuccessful attempts so fer to 


Further pressure may also be 
applied to revenue costs, the 
most likely target being the bio- 


secure its independence, itself ated bureaucracy. This Is known 
Unirpri with the affront to regio- as the tee th-to- tail ratio and 

wmm - ■ fnm orml ttfinrafitc Frit* 


sensibilites caused by produces two civil servants for 
French nuclear testing at every uniformed officer at the 
Irimimji Atoll. senior levels. Australia spends 

M To Australia’s dismay both twice as much on its defence 
■~ U> 'Tnrt thp US have bureaucracy as it does on 
gSSrf »“ to rign “SpiJta 5 tetence research and develop- 

“S-ly. rationalisation is 
nuclear-free ' ^«aty long overdue: there are fewer 

largely _ j. South Paci- air . force fighter pilots than 
emanating^m the SoutoFMi only 21 per cent of the 

fic . ^ on ^iLr. to aarae Navy is at sea and there are only 

welgS t^s^maiinecrewsforsix 

in the/Stt “H^^whne the white nap. 

them ttoro *nd reon er's proposals should provide a 


air . force fighter pilots than 
planes, only 21 per cent of the 
Navy is at sea and there are only 
three submarine crews for six 


which possess nuclear- weapons 
not to use them in the South 

Pacific. an isolationist Fortress Austra- 

But t 5^.Sm^Th?dS2S tia policy. While the Bomb-Cen- 
affairs diffic^t^Ttte aenroce ^^we-Brigade. as the Air 

^SSorSSnSnSi Force . is sometimes unkindly 
Australia itseu 100x3 known, has been denied its 

oftite 23F-111 the strike potential of 


er's proposals should provide a 
more coherent and slimmer 
defence force, they do not imply 
an isolationist Fortress Austra- 


gven 23 F-lllthe strike potential of 
are being taken. As p ^ moxe economical multi-role 

defensive ana regions* n 1!V- ♦ha.wA.re «nn ha 


defensive Navv aircraft like the FA-18 will be 

strategies maximised in the only strike- 

15 offensive aspect of Che new 

. defeMeiiolicr '.. -i 


enough alarm bells in Canberra 
to spark a reappraisal of 
regional foreign policy. 

Mr Eduard Shevardnadze, the 
Soviet Foreign Minister, stres- 
sed during a brief visit to 
Australia earlier this month 
that hjs country's pursuit of 
fishing agreements in the region 
was purely commercial with 
“ no bad aims or hidden inten- 
tions.” But the Australians view 
of the notorious Soviet *' traw- 
lerg,” which a o pear all over the 
world covered in radio anten- 
nae, and the multiple possible 
uses of “ port facilities,” caused 
a new unease. 

In addition, new satellite 
photographs published In 
Australia indicate that the 
Soviet naval base being 
developed at Cam Ranh Bay in 
Vietnam Is larger and more 
extensive than previously 
believed, further stimulating 
Australia to demonstrate a 
more active interest in the area. 

A recent announcement, for 
example, indicated that in 
future the South Pacific will be 
accorded equal priority with 
south east Asia in strategic 
defence thinking. This is not to 
say that there Is any anxiety yet 
about any Soviet aggressive 
military aims but the combina- 
tion of events has been enough 
to make Australia think hard, 
for example, about its 
dependent on open sea lanes 
for trade and the potential 
vulnerability of these trading 


routes. 

Australian identity with 
regional interests has also set it 
firmly against France, with 
whom relations have deterio- 
rated seriously over events 
essentially emanating from the 
continuation of nuclear testing 
by the French atMururoa in the 
South Pacific. 

Most of tbe Pacific islands are 
opposed to the nuclear tests and 
want the South Pacifc to be a 
nuclear-free zone, a policy 
actively supported by New Zea- 
land where the Government’s 
refusal to allow entry to US ves- 
sels unless they declared they 
had no nuclear equipment on 
board led to the collapse of the 
Anzus treaty between New Zea- 
land, the US and Australia. 

Australia Is dying to hedge 
round this problem. It retains 
firm links with both New Zea- 
land and the US, for example, 
while also warning New Zea- 
land that Canberra cannot be 
expected to take over 
responsibility for the entire 
defence of the region. At the 
same time Australia has sup- 
ported the concept of “Spin- 
fiz” — the treaty in which the 
signatories agree in principle 
that the South Pacific should 
become a nuclear free zone. 

The treaty, enthusiastically 
'supported by New Zealand, was 
conceived by the Pacific Forum 
states. Its wording is such that 
signing it involves little more 
than making a general state- 


ment about tbe undesirability of 
nuclear war. In detail, signator- 
ies agree not to make, store or 
use nuclear weapons in the 
South Pacific. 

The Australian Foreign 
Ministry has not attempted to 
disguise its disappointment that 
nations like the US and Britain, 
among others, have not signed it 
because of their sensitivity to 
France, which clearly cannot 
sign without giving up its nuc- 
lear test programme in the area. 

Canberra’s relations with 
France, possibly the least popu- 
lar country among Pacific states 
at the moment, are made yet 
worse by the overt support by 
Australia for the Kanak 
people's independence move- 
ment in New Caledonia and for 
attempts to have the island rec- 
ognised by the UN as a territory 
to be decolonised. 

French ftiry at Australia’s 
stance culminated with the 
Australian consular general in 
New Caledonia being declared 
persona non grata earlier this 
year and France banning all 
ministerial and official contacts 
between the two countries. 

'While Australia would prefer to 
remain on good relations with- 
countries like France and feels 
historically closer to Europe and 
(he West than to Asia, these sort of 
incidents are doing the country a 
great deal of good in the Pacific 
where Australia is increasingly 
being seen as a strong and active 
insider rather than outsider 


nation. 

Nevertheless, despite growing 
affinities with the Pacific and 
Asian regions some local suspi- 
cions about Australia remain, 
largely based on its identification 
as an essentially white wester- 
nised society at odds with the 
values of some of its neighbouring 
cultures. 

Relations with Indonesia are 
poor, having been soured further 
last year in a row last year oven 
reports in tbe free Australian 
press which were critical of the 
Indonesian president Austra- 
lians are slightly distrustful of 
Indonesia's intentions in the area 
and although Indonesia is not a 
credible threat to Australia's 
security people living in tbe north 
of the continent are acutely aware 
that they are much nearer Indone- 
sia than they are to Sydney. 

Nevertheless, south-east and 
north-east Asia are clearly the 
major trading partners of the 
future — and probably also the 
source of many or the immigrants 
needed to create a viable internal 
market in Australia, although the 
inevitable “Asianisation” of the 
country remains a delicate 
subject 

This raises tbe delicate subject 
of Australia's relations with 
Japan. Both countries are seeking 
stronger bilateral relations and 
free-spending Japanese visitors 
bring much needed foreign 
currency to Australia — although 
they are more welcome by many 
citizens as tourists than as settlers 
seeking retirement homes in 



Mr BUI Hayden, Foreign Minister ; 
authori ta tive politician 

Japanese village complexes, of 
which there are certain to, be 
more in the future. 

Relations have not been close 
recently because of Japan's 
in penetrable trade protection 
barriers but Japan's new-found 
interest in expanding its sphere of 
influence into the pacific to coun- 
ter Soviet ambitions requires 
Australia to join and support in a 
common bilateral foreign policy, 
Japan working from the north and 


: widely respected as a clever and 


Australia from the south. A trade 
off might mean tbe Japanese 
finally opening the door slightly to 
allow Australian exporters Into 
Japanese markets. 

Whether Ur Hawkins or Mr 
Hayden takes centre stage in this 
debate in coming months will 
indicate more than anything 
whether the Australian foreign 
ministry is really refocussing its 
foreign policy. 

Robin Pauley 


CHASE CORPORATION LIMITED 


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Financial Times Monday March 30 1587 


AUSTRALIA 4 


Restructuring the economy 


Current account deficit 


A long and difficult road 


percent 


3*0 USSbn 


Volume chanf* 


QUESTION: When is bad econo- 
mic news good economic news? 

Answer: When it’s Australian 
economic news. That, at least, is 
the unhappy implication of the 
“lacfey co an try's" present 

appalling economic predica- 
ment 

In the past, unexpected turns 
of fortune have come to Austra- 
lia's rescue when the economy 
has looked threatened. But if it 
happens again this time, a 
courageous attempt to restruc- 
ture the economy might be 
halted in its tracks, almost cer- 
tainly to the long-term detri- 
ment of all 

As things stand, a fortuitous 
rescue looks unlikely. It could 
only come from an across-the- 
board rally in world commodity 
prices ana this is not being fore- 
shadowed for any time this 
decade. 

That means hauling the coun- 
try on a long and difficult road 
over a period far longer than 
any government’s term of office. 
To Labor’s immense credit, it 
has determinedly begun this 
task rather than simply muddle 
through. 

Unfortunately, this has meant 
administering some bitter medi- 
cine— demanding real sacri- 
fices from both individuals and 
government in order to secure 
any genuine long-term improve- 
ment 

The trouble is, serious ques- 
tions overshadow this laudable 
straegy. Did the Government 
recognise the problems early 
enough to take effective action? 
Has it done enough so far to 



prove adequate in combating 
the disastrous effects of Austra- 
lia's relentlessly declining ■ — 

terms of trade. 

Finally, he refuses point- _4 

blank to press ahead with poli- 
cies which might push the eco- r 

nomy into recession, cause rj 

unemployment on the scale 2 -j 

seen in Britain, or jeopardise ==- 

the Government's remarkable ;• 

working relationship with the i-1 ■. 

trade union movement J >• 

Mr Keating's contentions are O ME* 
understandable, especially t980 

given the constraints of Austra- 
lia's three-year government 
terms. Bat they are also a cause ment hoped- 
for anxiety. _ _ Over the 




two years 


Economists acknowledge, for Australia’s terms of trade have 
example, that no oae back in 'worsened by some 20 per cent 
1984 projected the continuing Only gold and wool seem to have 
fail in commodity prices. Bu t bucked a trend which has tut 
the long-term decline in Anstra- the country's wheat, sugar, 
lia’s terms of trade now meat, coal and iron ore. 


Australian dollar 


1-00 AS 


stretches back decades, and this as the current account deficit 

demanded action even before c f the balance of payments has 
Labor came to office. soared to record levels, the 

As for the measures so for, Australian dollar, which was 
most of these have carried floated in 1983, has weakened 


L - OV 


... - . _ . . . _ . modern economic management 

Mr Paul Keating, Treasurer: a d mini stering some Utter medetae which, again, reflects badly on 


Australia into an exciting era of dramatically. 

modern economic management Worried about domestic reac- 

which, again, reflects badly on tion and rising inflation, the 




Labor’s predecessors. But Government last September put 
combat them? Are political con- cial years of the Hawke admi- doubts persist over whether a floor under foe currency, 
siderations now limiting how nistration, when gross dOBMtic focy have come too late and Helped by high interest ratos. 


much more can be done? product expanded by 5.4 per with enough biteto deal with 
To speak to Mr Paul Keating, cent, 4.4 per cent and 3.7 per deteriorating external and 

the Labor Government's power- cent— better than most of internal conditions. 

fill and self-assured 43-year-old Australia’s OECD partners. to toe current year; Australia 

Treasurer, the answer to all Equally, he is confident that the will still posta positive growth 
three questions is an emphatic, array of austerity measures figure of pern aps a per cent, 
and slightly worrying, “yes." taken so far and now under con- Though this reflects a oam- 


and slightly worrying, “yes." taken so far and now under con- 
He does not accept that a mis- sideration — in fiscal and monet- 
take was made in going for ary policy, on the exchange rate 
growth in toe first three finan- and over labour costs— will 


the dollar has since - — 

strengthened, but in defiance of 

fundamentals and in a way that 

may prove counter-productive if 250 " 
it continues. — acSmm 

The farming community is 


Though this reflects a dam- suffering most, caught in a clas- 
pened domestic economy and S ( c vice of low prices and high 
weak external demand, it is costs, but tourism has seen a 
actually less than the Govern- marked improvement Manu- 
. fecturers have responded 


son & Co.McCaughan Dyson &. Co. Limited MeQsughan Dyson & Co. Limited McCaughan Dyson & Co. Limited McCaughan Dyson & Co. McCau 


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slowly: import replacement and 
export generation is proceeding 


As the current account defieft of the balance of payments has 
soared to record levels, the Anstraflao doHar, which was floated in 
1983, has weakened dramatically. Over toe past two years Austra- 
lia's terms of trade have worsened by some 20 per cent. 


One important side-effect of 
these d evelopments has been a 
sharp rise in Australia’s exter- 
nal debt Figures for the three 
months ending last September 
were released in February and 
showed the debt rising above 
ASlOObn for the first time. 

Gross external debt was put at 
A$101.36bn, up from A$7ttfl6bn 
s year earlier and from 
A$35.6bn in June 1983. Net 
external debt, measured after 
subtracting lending abroad and 
official reserve assets, 
increased to A980.71bn- 

Axonnd half of the increase in 
gross debt since mid-1984 hag 
been due to the depredation of 
the Australian dollar, the 
currency in which- Australian 
defat is customarily measured. 
The remainder reflects 
increased foreign borrowing, 
much of it by the private sector 
and the states rather than toe 
federal government _ 

This trend reflects how both 
the Government's needs have 
pre-empted other borro w e r s 
and adverse interest rate 
differentials have driven them 
offkhore. 

The implications for Austra- 
lia's firtnre are sobering. Accor- 
ding to the Government's econo- 
mic p fawning advisoiy council, 
it wiu take a swing into surplus 
on the trade balance and a sta- 
bilisation of net foreign debt at 
40 per cent of GDP (the present 
level is 38 per cent) to halve the 
current account deficit to 3 per 
emit of GDP fay the end of toe 
decade. 

According to the council, this 
can only be done through sus- 
tained depreciation of the. 
Australian dollar, continued 
high interest rates, frothier mod- 
eration in labour- cost growth, 
reduced consumption spending, 
increased domestic savings, a 
switch in foreign and domestic 
demand - for Australian ; pro- 
ducts, and strengthened invest- 
ment to build a competitive 


patchily, 

remains 

levels. 


r'S.rSt: the begins dieg .e.els, with tt. .effect, of ^ 


in July. 


buoying the net public sector 


According to Mr Routing , the borrowing requirement. 


and formidable 
s out in simple. 


Having helped to create Accoruing to sos z^eaung, xne ^ nr catalogue spells out in simple. 

750.000 jobs, toe Government's reason forthe May state- SJtodtof but highly problematic terms 

latitude to impose austerity ment is to allow toe cuts to take deficit has, together with the j. Hicfc which Mr Keating and 

!Sn wideSTb^ a retotively over toe ton year toste^ f ra °L SS SSif 

cwtTh^ilsUinSlow to? t °If5^ t y« t to spell outtoe 

‘’llle^nilBUQn rate, hoirever, at tte Gevenment has had May meeb. and these to, have made 

&Se°r P ^ n ^?S'd e /S ^ 

S ggg g 

Australians hare foryears been J^weaddputdat^ndU 


The ialffitaprate. however, at U>= Goverement has had May meat s, and the se toe toe made 
lust under 10 per cent is several statements before. an unexpectedly high contribu- 

timps hicher^than its trading The Government's fiscal tion to government s pen d in g. 
nartnereVELnd only likely to fall policy has nevertheless turned The markets will therefore be 
SSS? toTB out to be less effective than looking to see bow stronifly toe 
Stint by^deunioMin the intended. Thebudget deficit for government baesjhe bulfet 


now widely accepted that been ordered to rein it back in. date; and toereistalkofmeans- 
uuw wiudj aw-cHHwnui. mi.] ,j — * i * »: middle-class recipients 


XL to UU«V W1UCIJ fllLCPlWi Ul«a ~ - . , - w 

Australians have for years been This would put it at around 15 


Stoe^enthwftu per cent of ghss domestic pro- of welfare. 

tovesLOzilynowSe they begin- duct, a creditable improvement Dealing with the state governr- are ant 

ninPtft aon^iat& and tonav on the figures ofthe Hawke Gov- meats may be more of a prob- orwsed np as such. 

?S£S5uew “ ^enmeSS eariy days. Without Jem, but the bulk are ruled by If AnatraW Diugr 

lor, me consequences. •* r a aconiesea in a third alternative 


If Australians. finally 

of attirn- cuts in toe” coming year, Laborgovernments. A premiers' acquire in a third alternative 
tion for the government and the however, toe deficit is likely to meeting is scheduled for May, so Of muddling through— ^dopting 
inteiStio^^^te^ remains reach A588^bn, so A53bn must there is tittle doubt that the Jgtoti* taowntocallj j * toe 
the current account of toe be excised to keep the deficit at message will get home. mentality— 

balance of oayments— the bare- a similar level without resorting Thatching the outcome aloag toey wiU end np, perhajw 

«o n« or hi^er UxeT Alta 


the global challenge. 


=- | much Australians are living 


The problem, though, lies domestic political opposition cum for the messthey will be 
more with the state govern- parties. They have been promis- to. But they may be too late to 


•BrtStSStt has been SSS.’SS S S ^“to^^^^to^ 

in deficit since 1973-74,but has agencies than with toe Federal which, cm only. be ..^f d . eC ^°‘ 


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hM>nmp <rtTatnsnhpric under Government The states have through massive spending 
Labor! hi ttinga^Mord A$10.8bn di pped into reserves from past redactions. Details are still 
in 1984-85 and then exceeding borrowings to maintain spen- awaited, 
this last year to reach A$13.7bn. . ... , . 

■»*.aa i 3ttssrg Upheavals in banking 

thin year at around the same 

level instead of A$lbn higher. . _ 

as projected in last August’s f r, — ^ — " 8 • 

budget The truth, however, is 1 M fi f| I fj rj ATl 

^«r^ t , 6 br cent l * gUlllg gcL 

For many economists, there- 
fore, it is a matter of time before 

the currency once again comes TWO YEARS on from Federal Essentially, the big four 
under pressure. The strengthen- Treasurer Paul Keating’s bold Australian banks are engaged 
ing of the dollar in recent political experiment in dereg- in a defensive operation to pro- 
mouths mainly reflects a desire ulating the Australian financial tect their market share in the 
to take advantage of Australia's system, the country’s banking mainstream hapirfng areas. But 
high interest rates and coufi- industry is still very much in an they have thrown off a 
deuce about toe reserve bank’s adjustment phase. rather sleepy reputation and 


spe nding utic hews is good news. 

316 ““ cuts fe«ea 


The going gets tough 


djustment phase. rather sleepy reputation and 

The two centre-pieces of the competed strongly in some 


It has also been helped by Keating deregulation strategy— areas which have traditionally 
inward flows of capital to toe floating the currency and ueen the preserve of foreign 
share market, which has seen issuing licences to 16 new banks, 
heavy takeover activity and banks— have caused the biggest xhe score of foreign 


heavy takeover activity and banks— have caused the biggest The score of foreign 

strong demand for gold stocks— upheaval ever seen in toe com- now to operate in 

the latter because of a high bul- paratively short history of the Australia account for &5 per 
lion price in Australian dollars. Australian banking systems. cent of total banking assets and 


the us. 

New hanks bent on estab- 
lishing a retail presence have 
generally found the going tough 
with National Mutual Royal 
Bank a good example. The bank, 
a joint venture between the 
locally-based National Mutual 
Insurance Group and the Royal 
Bank of Canada, spent most of 
1988 in a troublesome take ever 
attempt on one ofthe country's 
largest building societies. 
United Permanent 

The acquisition was obviously 
aimed at securing a retailing 


Compared with the experi- 


non price in Australian oouars. Australian Da along systems. cent of total banking assets and acquisition was oimousiy 

I The overall effect has been to . . ... __ an even lusher 11.6 ner cent of ain 'ed at securing a retafluMT 

; keep the dollar hovering around network, but. ft invoWfg 

66-68 US cents and at 53-54 on a j a»up in considerable cost and 

trade-weighted basis tMay, Compared with toe expert- it reported an A$85m loss for 

1970=- 100). This is well up on toe j* ence S* Cana j i ®' 15 *** MB. Chase AMP, the joint ven- 

low point of last July when it {"f n! a 7n T !!5h Srow* indeed. That country tore between US-based Chase 

touched 57 US cents and went J 1 * admitted foreign banks in 1982 Manhattan Bank and toe local 

below 50 on the trade-weighted and it has taken them five years AMP Society, has also spent up 

index. National and the ANZ— have ml to reach an 88 per cent share of on retail development and 

While this might appear to Canadian banking assets. Part reported a AflAnbn in toe 

offer some scope for interest a halt and manyof toe.newcom- ofthe reason for toe newcomers same period. 


Sade-we^' tataaSr. *> ^ offered from what has Compared with the experi- 
i97O=i00)TThis is well up on the become a much more ence of Canada, this is fast 

low point of last July when it {"* ® rowth iudeed. That country 

touched 57 US cents and went S* admitted foreign banks in 1982 


offerKii^ scope for inteiret reaso^toe newcomm 

rate cuts— a particularly sensi- ers have an ^° unc „ IoS3es ’ m rapid growth in Australia is that 


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live issue for a government some cases heavy ones. 


seeking investment and re-elec- But that is only the short-tenn in 6 38 “5“usi banks " in the 
tion — Mr Keating is clear that picture and reflects consider- country for at least a decade. 

. u Kill. p .l:. -ti- ■ .1 Thneo nrfth Inn.l aivnmn&nAp, 


there is littie scope for this. able costs in gearing up f 
With the inflation rate sitting new environment. The 


just below 10 per cent, nominal banks have also made their nets. 

interest rates could not be debuts in a difficult economic US-owned Bankers Trust 

lowered much from existing environment with high interest Australia. for instance, 

levels (the benchmark long rates and a patchy economy, declared a A$342m profit in the 
bond rate is around 14 per cent) This has cut lending margins to latest period, much of it from 

without producing real rates too all-time lows of around 0.2 to 03 merchant banking. Citibank 

low for the markets to tolerate, per cent »i«cn performed well with a 


Canadian banking assets. Part reported a Ag7&m loss in the 
ofthe reason for toe newcomers same period, 
rapid growth in Australia is that Lloyds, which operates in 

many had already been operat- Australia jointly with the 
ing as " quasi banks " in the National Bank of New Zealand, 
country for at least a decade, obtained good mileage fromS 
Those with local experience extensive merchant bankute 
were among the best perfor- experience in Aostralia&Bd 
mers - Posted a A$8.1m profit in 1986. 

US-owned Bankers Trust *. „ w Sr e flie ? r °? m ,P®*fl>nnanee 
Australia, for instance, . been mixed, toe foreigners 
declared a A$34L2m profit in the ®eem already hr have dented 
latest period, much of it from ? Hr major local rivals. The 
merchant banking. Citibank ^ouimonwealth was the only 

.... c. i ,, mainp Ai.rt m. lltw. v.-L. . . 


forthe Those with local experience 
3 new vere among toe best perfor- 


low for the markets to tolerate, percent also performed well with a ma 3° r Australian bank to report 

Currently, market attention is A fairer test ofthe new banks A$58JBm profit in Australia. But P^^ve real earnings growth 
focused on the government's will come farther out once eco- the other side of thi» WBS a a rise of nearly 25 per cent 
expenditure statement planned nomic conditions have stabii- Af4L8m suffered fay Nat- to toe latest frill year. The other 
for May, a “ mini-budget* of ised and their strategies have West Australia, offshoot of the toree banks reported virtually 
spending cuts to take effect in had time to work. National Westminster Group of — 

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Financial Times Monday March 30 1987 


i 


■ i 


( AUSTRALIA 5 ) 



Taxation reforms 


Inflation 



state onfif econ^TSS^e 

g^eot°ve flwtttteS 

debate. m «^ teb ^,Jf- 0 ^ atea 

■55*S05£ 

appeared on the national noliti- 
^b^rn^fr lat fK la ^J ear ’ both Mr 

Sd 2? jbSA Pn ^ e Minister, 
ana Mr John Howard, leader of 
Opposition UbewdpSty 
w«e agreed on that 
JU1 three are now vying to 

SfiBP «k35 to 

^j»tealia s taxation system. Sir 
Joh s plans are the most radical 
but also the mos tfaml St 
Howard has kept the lid on his 
proposals, but they would 
undoubtedly go fUrtfcS thaj?b£ 
Labor opponents. 

' Y 5 t °je inescapable feet is 

*** Paul Kiting, the 
Labor Treasurer, Australia has 
already seen the most compre- 
hensive and radical taxation 
V? ® ener a lions. The fact 
that the Government should be 

e™£h» ttaClC f ° r doiS| 

enough ” says much about the 

“fSS? °i f th ^K Current deb ate. 

lengthy catalogue of 
changes is contained in a docu- 
rathGr eroelly As 
t S e * acron y ni for Mr 
Keatmg’s statement on Septem- 

caUed 44 Reformer 
the Australian taxation system.’' 
In this, he said the time had 
gone when Australia bad a 
reasonably sane and credible 
taxation system. The old system, 
he said, had been “ broken and 
beaten by an avalanche of avoi- 
dance, evasion and minimisa- 
tion-” As he put it, the changes 
would “ significantly reduce 
marginal tax rates,” curtail tax 
avoidance and evasion and 
restore fairness to the tax sys- 
tem M and gear our tax system 
for economic growth by provid- 
ing greater rewards for initia- 
tive, removing distorting shel- 
ters and ending the double taxa- 
tion of dividends.” 

The reforms are due to be in 
place before the start of the 
next financial year in July. 
Some key aspects have yet to be 
legislated. Many have already 
caused pain for taxpayers, 
lawyers and accountants as well 
as the Government and the taxa- 
tion office. But less than two 
years after they were unveiled, 
they should be fully 
operational 

The most important changes, 
politically, are those which 
reduce marginal rates of 
income tax. This, is being done 
in ‘ two stages, the first last 
December, the second in July. 
As this is mandated by law, 
there is little chance of the July 
cut being reversed in order to 
contain the Government’s swol- 
len budget deficit 
The need for the cuts is under- 
lined by the fact tha one in 
every two taxpayers is currently 
paying a marginal rate of 40 per 
cent or higher. In 1956, the 
figure was one-in-40. 

The trend reflects a rise in 
marginal rates biting at lower 
levels of income. To reach the 
top income tax bracket nowa- 
days, an Australian taxpayer 
only has to earn one-and-a-half 
times average weekly earnings. 

The December cuts increased 
the tax-free threshold and 
lowered all ma r ginal rates. The 
second stage will affect only the 
top rates— an intriguing move 
politically on the part of a Labor 
Government. Overall, the high- 
est rate will fall from 60 per cent 
to 49 per cent but will continue 
to apply from annual incomes of 
only A$35,00a . 

Despite the improvements, 
the impact has been blunted for 


debate intensifies 


the betteivoff by the introduc- 
tion Of a capital gains tax. 
Although this is levied at ordin- 
ary rates of tax on realised (and 
ro&l) capital gains made after 
- September 1985, it has earned 
criticism. 

, Pa ftiy tbis is because the 
legislation only followed seve- 
ral months after details of the 
tax were first announced, lead- 
ing to inevitable anomalies. But 
the main complaint is that the 
introsiveness of the tax has 
proved far greater' than 
expected— the revenue yield, 
put at A$25m in the fifth year, is 
certain to be exceeded in the 
first 

The opposition Liberal Party 
and. latterly. Sir Joh Bjelke- 
Petersen have meanwhile 
sought to belittle the impact of 
the Income tax cuts and prom- 
ised even larger ones of their 
own. 

By the beginning of this 
March, neither had spelled out 
precisely how these would be 
paid for. Labor’s cuts, on the 
other band, are to be tended 
through controls over public 
spending without adding to the 
Government’s deficit 
Work by Prof Michael Porter’s 
team at Monash University’s 
Centre of Policy Studies in Mel- 
bourne suggests that spending 
cuts of A$8bn would be neces- 
sary both to remove the current 
budget deficit (targeted this 
year as AfSL5bn) and to support 
a top marginal rate of 30 per 
cent 

The Government itself claims 
even larger cuts would be 
required to support Sir Job's 
plan for a 25 per cent fiat tax 
rate or for the Liberals’ propo- 
sals, but until these are spelled 
out more clearly, this is difficult 
to assess. 

A further complication for the 
troubled opposition coalition 
linking the Liberals and the 
National Party (of which Sir Joh 
is a member) has been the lat- 
ter’s rejection of a consumption 
or expenditure tax. 

The Nationals, formerly the 
Country Party, say this would 
fa» unfairly on rural communi- 
ties. The Liberals say it offers 
an opportunity to broaden the 
tax base and to flatten existing 
indirect taxation, which cur- 
rently hits a few commodities at 
high rates. 

The Government itself prop- 
osed a consumption tax in 1985, 
but in what may go down as the 
single biggest missed opportun- 
ity of Mr Hawke’s rule, backed 
down and decided to simplify 
existing wholesale tax sche- 
dules Instead. 

Ironically, Mr Keating now 
says it would be wrong to intro- 
duce such a tax because of the 
-boost. It would give to Austra- 
lia’s already high inflation rate. 

On the corporate tax front, 
one key feature of labor’s 
reforms is an alignment atr 49 
per cent of the top personal 
income tax rate with the corpo- 
rate tax rate, to take effect from 
July. 

The change, which increases 
the corporate tax rate from its 
present 46 per cent level, 
neutralises the tax considera- 
tions which have encouraged 
individuals to form companies. 
It is one of several corporate tax 
reforms which, taken together, 
are quite as important as the 
personal tax changes. 

. Apart from the capital gains 
tax, three in particular are 
altering the way business is 
done in Australia: the fringe 
benefits tax, the foreign tax cre- 
dits system, and the introduc- 
tion of dividend imputation. . 

The opposition parties, to the 
extent they have spelled out 
their position on corporate tax 
promise to abolish the capital 
gftinE tax and the fringe benefits 
tax. • 

The- latter is designed to com- 
bat the tendency of employers 


Pressure on banks 


CoBtbwed from pafle 4 

static results in the same period 
and laid most of the blame on 
Government economic policy. 

Apart from a growing bad 
debt problem resulting largely 
from depressed sectors or the 
Australian economy, the local 
banks also have a dilemma 
which their foreign competitors 
do not — the growing millstone or 
bousing loans. 

Tbe Big Four have been 
forced by the Federal Govern- 
ment to maintain rates on their 
^ Tierin g housing loan portfolios 
at 13.5 per cent, even though 
they are permitted to charge 
any rate they chose for new 

housing loans are, in feet, the 
only significant area of .finan- 
cial markets which remain reg- 
Sated because of their politic* 
significance. But in 
interest rate regime where 
prime lending rates are around 
taper cent being restricted to 
13.5 per cent on housing loans is 
Msting the local banks dearie 

Despite this problem, Aurtra- 
tianbanks have, as indicated, 
moved to counter their foreign 

Stack on their .markets by mw- 
fn? more heavily. into capital 
I^frfePts and international 
gSSdon. With local capital 
raisings in Australia 
at an annual rate of 
3£St%80m-more than twice 

tibelevel of a year ago-ihe local 
banks have made their presence 
felt for the first time. 

After years allowing the largo 
foreign investment banks such 

SsSomons, Merrill lynch and 
Morgan Guaranty to dominate 
the scene, Australian banks 
£ndled about 40 per cent of 


local capital raisings in 1986 
with Westpac alone accounting 
for nearly one-fifth of the total 
tends raised. 

Australian banks are now par- 
ticularly strong in arranging, 
lead-managing and underwrit- 
ing syndicated loans, revolving 
underwritten facilities and 
promissory notes. However, 
they are still weak in bonds and 
this area could well be addres- 
sed in 1967. - 

While they are all attacking 
local capital markets, the trad- 
ing banks are split down the 
middle over the question of 
rapid overseas expansion. The 
ANZ has gone in at the deep end 
with its 1984 purchase of the 
UK-based Grind lays group for 
about A$280m and now has 
about 44.5 per cent of its assets 
overseas. 

Westpac also has strong over- 
seas ambitions, recently billing 
itself as “Australia's world 
bank ” in promotional material. 
The bank has about 28 per cent 
of its assets overseas and a 
stated aim of rapidly increasing 
this. 

Conversely, the National 
Bank, with about 21 per cent of 
its assets offshore, believes its 
domestic-international balance 
is about right and plans to con- 
centrate on its *home market 
The Commonwealth’s position 
is similar, with about 20 per 
cent of its assets overseas. 

Being owned by the Federal 
Government the Common- 
wealth does not feel a further 
push into overseas markets 
would be politically 
appropriate. . 

Bcuce Jacques 


to remunerate Employees 
through fringe benefits and 
thereby avoid high marginal 
income tax rates. But because it 
is levied on employers— cur- 
rently at 46 per cent from July 
at 49 per cent— it is by them as a 
tax on employment 

Indeed, their angry response 
last year to the complications 
and extra bookwork forced the 
Government to review its 
“ unintended consequences ” 
and make some adjustments. 
More than any other measure, 
the fringe benefits tax has made 
employers speak out against the 
Govern mentrs taxation policies. 

Their aimer seems all the 
more justified in light of the 
Government’s failure to push 
through its consumption tax 
plan. This lack of will contri- 
buted to the imposition of the 
fringe benefits tax, while the 
Government's worries about the 
political effect of the tax on 
ordinaiy working people led it 
to levy the tax on employers. 

Also raising the ire of 
businessmen is the ' Govern- 
ment's foreign tax credit system, 
under which the Government, 
from July, taxes the foreign 
source income of Australian 
residents at Australian rates. 

Previously the income of 
Australian residents from 
foreign sources was exempt 
from income tax if it bad been 
subject to tax abroad. Now this 
tax will simply be credited and 


allowed against Australian tax 
payable on the Income. 

Businessmen who have 
expanded abroad have been 
quick to complain, although it is 
clear that the Government 
wants to recoup income lost 
through the incorporation of 
businesses in tax havens and 
low-tax countries. 

Perhaps predictably, at least 
two companies, both in mining, 

are reported to have shifted 

their corporate assets abroad, 
in one case to New Zealand, in 
the other to the Isle of Man, in 
order to avoid being penalised 
by the Australian taxation 
system. 

Bat tax specialists say it is too 
early to judge what the impact 
of the change will be until it is 
implemented. 

As for the Government's most 
positive corporate tax reform, 
the introducton of a dividend 
imputation scheme, this, too, 
has attracted criticism. The 
change, in removing the double 
taxation of dividends to share- 
holders, aims to encourage 
share ownership, and a shift in 
corporate financing from debt 
to equity. 

Legislation is still awaited, so 
again it is too early to assess its 
likely impact. But principles of 
the scheme are clear. 

Companies will have two 
types of -dividend — qualifying, 
or franked, and unfra liked. 
Corporate tax of 40 per cent will 



Trade untofiists In Sydney protest over wage restraint levels to combat inflation 


be paid on qualifying dividends, 
and shareholders will receive a 
credit for this tax to be set 
against tax payable on other 
income. On tin franked 

dividends, shareholders would 
still be liable for tax. 

Mr Keating has called the 
change the most significant 
business tax reform since the 
war, giving Australia one of the 
most advanced and efficient 
business tax regimes in the 
world. 

But it is being paid for partly 
through the increase in the 
corporate tax rate from 46 per 
cent to 49 per cent. Although 
this brings about the beneficial 
alignment with the top personal 
tax rate, the rise has irritated 
businessmen. 

The scheme's main selling 


point is that it significantly 
increases shareholders' after- 
tax returns in the form of 
dividends, whether they are 

residents or non-residents. 

This in turn is supposed to 
encourage investment in shares 
for long-term returns, and to 
increase the incentive for small 
and medium-sized business 
people to take risks. 

The system is described as a 
world first because it will be the 
only imputation system in which 
the frill rate of company tax paid 
is credited to shareholders. 

But it has been criticised 
because individual share- 
holders represent only around 
one-quarter of all shareholders. 
The rest are made up of institu- 
tions. many of which are not 
liable to tax (like superannua- 


tion fluids) or pay only a with- 
holding tax (like overseas resi- 
dents). 

For them, the new system 
appears to hold little attraction, 
and they may even be tempted 
to adjust their portfolios to the 
new circumstances, perhaps 
away from shares and into debt 
instnuuents. 

In addition, companies which 
pay less than the frill corporate 
rate of tax may find it less easy 
to do this under the new system. 
They will be hoping that there 
will be sufficient tax-paid profit 
to cover their payouts of qual- 
ifying dividends. 

Either way, it appears that the 
system will create different 
classes of investor according to 
whether they are paying high or 
low marginal rates of income 


tax and whether the companies 
in which they invest have high 
or low tax rates and dividend 
payouts. 

In all of these changes, two 
damaging effects stand out. One 
is that the taxation office, 
already under attack for its 
inefficiency, lack of resources 
and staff, has had trouble 
coping. 

The other is that, in making 
some of its reforms by press 
statement and parliamentary 
pronouncement, the Govern- 
ment has created uncertainty at 
home and abroad which has 
impaired the confidence which 
the measures ought to be 
inspiring. 

Chris ShenraB 


One of Australia’s leading companies. 


Coles Myer, Australia’s 

leading company by sales, has 20% of its national 
retail market and annual sales of over A$10.4 billion. 

Its 1570 Stores and 142,000 employees serve the daily needs 
of a vigorous, growing country. Coles Myer is the market leader 
in discount retailing and department stores; it conducts one of 
Australia’s largest supermarket operations and nationwide liquor, fashion, 
footwear and fast-food chains. Average growth in sales for the last decade was 
23% with profit rising 20% on average. Coles Myer and its finance arm, Coles Myer 
Finance Limited, have the highest credit ratings available from Australia’s major credit 
rating agency, Australian Ratings Pty Ltd: “AAA” for its long term debt and “A1+” for 
its commercial paper. In February 1 987, Coles Myer’s ordinaiy shares joined the 
Official List of The Stock Exchange in London and are listed on the Australian 
Associated Stock Exchanges and The New Zealand Stock Exchange. 


One of the world’s leading retailers, 



Coles Myer Ltd. 

256 Bourke St, Melbourne. Australia Phone: (613) 667 4111. Tfelex: AA 34090 








IV 


financial Times Monday March a) 1987- 


AUSTRALIA 6 


Sharemarkets boom 






'♦CVT'Vi.V 


A flood of new issues 




AUSTRALIAN sharemarkets 
are experiencing the strongest 
am} most broadly-based boom 
in their 150-year histoiy and 
have comfortably outperformed 
their major international rivals’ 
in the past two years. 

Continuing major takeovers 
and a flood of institutional 
money from domestic and over- 
seas sources have combined to 
cast aside Australia’s consider- 
able economic problems and 
confound the market fun- 
damentalists. 

While cautious analysts warn 
of an imminent correction, more 
seasoned investors are reaping 
huge rewards not just from 
physical markets but with 
increasing use of sophisticated 
share-related ploys in futures 
and options markets. 

With a capitalisation In early 
1987 standing comfortably 
above A$190bn, the Australian 
bourse ranks as the world's 
sixth largest, accounting for 
more than 3 per cent of non-US 
listed share value. 

The value of listed Australian 
stocks more than doubled in 
1985 and 1986. a growth rate 
which is well ahead of major 


bourses is Tokyo (up about 75 
per cent in the period). New 
York (up around 55 per cent) 
and London (ahead about 40 per 
cent). 

In the same period, Austra- 
lian market turnover has more 
than tripled with shares worth 
more than A$Wbn changing 
hands in 1988. These boom con- 
ditions have brought a flood of 
floats and issues to the market 
with more than 100 new com- 
panies listed in the second half 
of 1986 alone. 

Australian exchanges hosted 
capital raisings approaching 
A$&6bn in the same six months, 
a rate not far behind the entire 
previous year. To date, these 
raisings have for from satiated 
■the market’s appetite for scrip, 
but they have brought inevit- 
able cries that the market is 
now “ defying the fun- 
damentals ” or has “ entered a 
mature phase.” 

Leading Australian stock- 
broker, Ord Minnett, placed 
itself in this camp with a recent 
analysis of the rush to raise 
equity. Analyst Geoff Warren 
pointed out that although rais- 
ings were running at an a™u«i 


rate well in excess of A$10bn, 
not all of this amount was com- 
ing directly from local inves- 


tor’s pockets because of cross 
shareholdings between corn- 


shareholdings between com- 
panies ana generally high 
foreign equity levels. 

Bat Warren said extraction 
from investor liquidity was still 
substantial, especially as fewer 
recent take overs had contained 
cash considerations, “ even the 
Herald and Weekly Times take 
over placed no more than 
A$500m in shareholders' hands, 
and this amount will be offset by 
new media-related issues,” he 
said. 

M New issues plus the effect of 
prices rising at the rate of 50 to 
100 per cent per annum would 
have substantially raised port- 
folio weightings in Australian 
stocks. This increase in weight- 
ings would also be reinforced by 
a firm Australian dollar and a 
weak Australian bond market. 

“ The higher the weightings 
go, the more vulnerable inves- 
tors become to a market 
decline, and the greater the 
scope for a nervous correction. 
Weight-of-mooey has been the 
accepted life-blood of the 


ON TOP, 
DOWN UNDER. 


In most major surveys of the Australian 
stockbroking industry since 1975, only one firm has 
been consistently rated first six times. 


The firm is Ord Minnett, one of Australia’s oldest 
and most experienced stockbrokers. 


Founded in 1872, Ord Minnett today from its 
offices in Australia, London and New York, offers a 
comprehensive range of investment services designed 
to meet the needs of corporate and institutional clients 
both at home and abroad. 


In London, Ord Minnett are specialists in the sale 
of Australian equities to UK and all European Markets, 
and also have a corporate finance capability. 


Knowledge and expertise in financial markets and 
a solid track record of achievement characterise over a 
century of service. 


Perhaps its little wonder that recent surveys rated 
Ord Minnett on top, down under. 


Old Minnett 


Member of the Stock Exchange, London. 

Member Corporation of the Sydney Stock Exchange Limited 
One College Hill EC4R 2RA 
Telephone (01) 248 1606 Telex 887149 Fax (01) 236 0125 


KIA ORA GOLD 


CORPORATION NL 


GOLD PRODUCTION 

For the year ended June 1986, Kia Ora produced 35,899 ounces of gold and for the 
year ending June 1 987, production from its Marvei Loch operations is expected to be 

40.000 ounces. 

Production for the year ended 30th June 1988 will be 56,000 ounces. The increased 
production wifi be maintained while low grade stock piles from open pit mining is 
being heap leached under the supervision of Kappes Cassidey and Associates. 
Existing proven reserves will enable production at this rate to be continued until 
June 1990, by which time the underground development will be completed and gold 
production should be maintained at these levels for at least a further five years. 
JOINT VENTURE 

Kia Ora has sold a 50% interest in its Marvel Loch operation to Mawson Pacific 
Limited for A$26 million cash. The joint venture will develop the underground 
reserves at Marvel Loch using bulk mining methods. Deep hole drilling indicates 
substantial underground reserves to sustain a bulk production programme of 

400.000 tonnes per annum at around 5g tonnes from 1989 for many years. 

SUCCESSFUL EXPLORATION RESULTS 

A drilling programme on the Transvaal area is being undertaken to establish the 
mining reserve. Transvaal is one of the prospects in the Jupiter area which has a 
strike length of 1 .6kms. of mineralisation and indications are that combined with 
New Zealand Gully an open cut operation of at least 1.2m tonnes at 3g/t should be 
opened by November of this year. 

Ore reserves as at 10th February 1987 were: 

MARVEL LOCH 
(Vnd. Exhibition Pit) 

Stockpiled for leaching 847,000 @ 1 .6 g/t 

Open Cut reserves 507,000 (a 1.6 g/t 

Leaching Proven 

Milling Proven 285,000 @ 3.7 g/t 

Underground Reserves 
Proven -Marvel 

Loch 203.000 @ 8.0 g/t 

Probable- Marvel 

Loch 430,000 @ 8.0 g/t 

Probable- Exhibition 534,000 @7.5 g/t 

EXPLORATION PROPERTIES 
Jupiter & New Zealand Gully 

Probably open cut 1,300,000 @3 g/t 

Reserves (Mining drilling concludes 30/4/88) 

ML Rankin 

Proven 250,000 & 2.5 g/t- 

Harris Find 

Probable 50,000 & 5/0 g/t 

Great Leviathan 

Probable 100,000 <&■ 1 .5 g/t 

9th Floor, 55 St. George's Terrace, Perth, WA 6000 
Tel: 61-09-325 5277. Telex: AA 94751. Fax: 61-09-325 7117 


285,000 @ 3.7 g/t 


203,000 <£ 8.0 g/t 


430.000 @8.0 g/t 

534.000 @7.5 g/t 


1,300,000 @3 g/t 


250,000 @ 2.5 grt 


50,000 @5/0 g/t 


100,000 <&• 1.5 g/t 


Australian market 

“ The above factors, plus the 
notion that the real money 
supply has been virtually- 
unchanged over the past year 
provide good reasons for cau- 
tion and reinforce our view that 
correction is near.” 

The Ord Minnet view is begin- 
ning to gain some support, yet 
even at prices which would have 
been considered heady only 
months ago. many Australian 
stocks axe selling at multiples 
which still appear cheap by 
international standards. 

Research by the US-based 
Morgan Stanley Capital Inter- 
national Group shows that at the 
end of January the Australian 
market was selling on a price- 
earnings multiple (pe) of 14.1. 
This was about line ball with 
the OK market at a pe of 14.3, 
bat was still well below the 
world average pe of 20 and the 
US figure of 1&2. The Austra- 
lian price level also paled 
against Japan's pe of 50, Singa- 
pore’s 40 and levels around 20 in 
Italy, France and Canada. 

The Morgan Stanley research 




mm 


IPS 




investors reap Mg t oward s on the stockmsrkst, cautious analysts warn of - an bnmtaent cornctton” 

tivity, the Mar- ducers, like Kidston and Cen- houses. These links are likely to procedures- But 

nw frai MnrcAinsn CnM stp wiling hprnmp awr firmer later in the and regulative proceu .. __ _■■■_■. 


aigi> highlighted the effects on 
the Australian market of the 
latest bout of take over activity 
j which has reshaped the coun- 
try’s media industry. 


the over activity, the Mar- ducers^ like Kidston and Cen- 
gan Stanley figures indicated tral Norseman Gold, are selling 
that selected • stocks in the at multiples well below 20 while 
Australian market are selling at North American miners like 


tral Norseman Gold, are selling become even firmer later in the a™ jegmanv exchange, 

at multiples well below 20 while year. _ 

North American miners like The ownership changes have wtti “ore important 

Homes take and Echo Bay Mines coincided with deregulation of two. ar S iaa ^^_ 


Spurred by take over bids 
worth more man A$3bn from Mr 
Rupert Murdoch’s News Group 
for the Herald and Weekly 
Times Ltd, Australia has three 
stocks in the world’s top 30 per- 
formers for the latest quarter — 
Advertiser Newspapers with a 
127.6 per cent gain, the Herald 
itself with a 94.8 per cent rise 
and John Fairfax with a 76.1 per 


than the gold sector where 
Australia is expanding rapidly 
and heading towards becoming 
the Western world’s second 
largest producer after South 
Africa by the 1990s. With South 


me oun iu region. . oeen more uuw iuuvcu aimx ■ -- - +_ TTK r f » r 

The current year is also a 1984, a factor which has made ment of a new share must 
watershed for the Australian marriages with larger financial and depository system- 


PlOiy wateisnea lor me Australian mam ages wim larger uiomciiu s n 

ming securities industry because it houses more attractive formany The exchange s 
•conrf marks the completion of the firms. these initiatives is to place 


process of deregulation begun Australian stock exchanges Australian bourses 


inweaa ui ucicbuuiuuu uc%uu nmu wimi owva c*tiuuiG» — — - . r._ 

in 1984. From April 1 this year, are also looking to round off ®ost efficent in me world tor 


Ainca oy me uaus. YY1U1 oouui in iw*. rrom i uua JWU, flic twtv immuig hi luuuu uu — — _ , ___ . c-ot+Jo. 

Africa now virtually out of con- outside shareholders both these developments with a Hum- execut ion of ^o rders ana serae- 


AinCd DOW vinutiiQ' OUL UI uuihiuc vuui tucac ucvciu^iuicubo mui a uimr isill 

teution as a gold investment foreign and domestic, will be ber of initiatives, the most visi- iront procedures, iney 

host because of political imcer- free to hold 100 per cent of hie of which will be joining of need to be if they are to maxj- 


cent jump. 

And while some of these 
prices have since subsided with 


tain ties. Australian gold stocks 
have been keenly sought, but 
their pes are still well below 
those of companies in the only 
other major producing area. 
North America. 

Australia’s leading listed pro- 


Australian broking firms. 


the country’s six trading floors mise • Australia's time zone 


Outsiders have been able to into one entity known as the. advantages and arrest the drift 


hold up to 50 per cent for more Australian Stock Exchange. V of business in Australian stocks 


than two years and this has led This has never .before been to of&hore locations. 


most of the major brokers to attempted in a country of such 
form partnerships with local geographic dimensions, and its . 


international financial - importance will be in greatly 


Bruce Jacques 


Industrial relations 


Wage accord a success so 


SMOOTH INDUSTRIAL rela- 
tions have been a key element 
in the Hawke government’s fight 
to restructure the Australian 
economy since it came to power 
in 1983, but more troubled times 
could lie ahead. 

The national wage “ accord ” 
between the government and 
the Australian Council of Trade 
Unions (ACTU) has helped com- 
bat the financial storms caused 
by a Large balance of payments 
deficit, a huge foreign debt and 
a crumbling dollar, but after 
four years of moderation, with 
foils in real wages under the 
accord, pent-up pressures are 
again making themselves felt 
From an employer's point of 
view, Australia's 309 ' trade 
unions have perhaps inherited 
most of the shortcomings which 
used to charcterise their British 
counterparts, and then added a 
few more of their own. Australia 
is one of the most heavily unio- 
nised countries in the western 
world with more than 55 per 
cent of male workers belonging 
to a trade union, a for higher 
proportion than in the US, and 
moat other OECD countries. 

Most of the unions are craft 
organisations and not as in the 
US, industrial unions. This has 
often meant restrictive prac- 
tices, comparability disputes 
and pay leap-frogging. Some 
trade unions in the past have 
been captured by left wingers, 
i and used for political purposes, 
i and there have been rashes of 
strikes comparable to the worst 
spasms in Britain, 
j The key difference between 
I Australia and many other west- 
ern countries, however, has 
been the existence since 1904 of 
1 the legally-backed Independent 
I Commission for Conciliation 
and Arbitration, founded to 
bring about the “ prevention 
and settlement or interstate 
industrial disputes.” 

There have been changes and 
amendments over the years, but 
the machinery is still basically 
intact There could be fiirther 
1 changes if recommendations in 


a recent government report are 
implemented. This very broadly 


wants the legal side of the dis- 
I putes procedure to be placed to 
, a greater extent in the hands of 


terpart in Sydney, irrespective 
of different economic condi- 
tions. 

Critics of the collective 
bargaining system— and these 
include not only employers but 
also a range of so-called “new 
Right" politicians— argue that 
because it is not related to price 
signals or market forces, it 
encourages labour inflexibility. 
At a time when Australia badly 
needs to restructure its eco- 
nomy, this rigidity is the last 
thing it can afford. 

The defenders of the system 
argue that it has served Austra- 
lia well There have been long 
periods of indexation which 
have kept wage increases in line 
with what the 'country can 
afford. Supporters would also 
argue that the unions in recent 
years, recognising the country’s 
economic difficulties, have 
shown moderation. 

This reasonableness has, 
however, been in part forced on 
them. Firstly, onion member- 
ship has begun to tail off and 
change as new service indus- 
tries which are not so heavily 
unionised have begun to 
replace the older manufactur- 
ing concerns. 

Secondly, a number of 
employers have taken the 
unions on in tribunals over 
restrictive work practices and 
won. At Mudginberri, for 
example, an abattoir-owner per- 
suaded the tribunal to agree to 
end a piece work system and 
replace it with a regular eight- 
hour day, under which workers 
would be paid for the number of 
beasts they slaughtered. 

In another case, at Robe 
River, an iron ore mine, new 
Australian owners took over the 
development from Japanese 
and American concerns, and, 
after much wrangling per- 
suaded a tribunal to end a 
wasteful shift system. 

These cases and others 
showed employers could get 
their way and corrected to some 
extent the pervasive feeling that 
the collective bargaining system 
and the Conciliation and 
Arbitration Commission were 



Bob Hawke: aware that after the 
s uc cess of the national wage' 
accord, pent-up pressures are 
again making themselves ML 


stacked in the unions* flavour. 

Thirdly, the current union 
leadership under Mr Simon 
Crean, the president of the 
ACTU and Mr Bill Kelly (secret- 
ary) has recognised the coun- 
try’s difficulties and has a 
strong interest In seeing the 
Labor Government remain in 
power. 

The national wage case has. 


for all intents and purposes, 
subsumed the accord. Set up 
just before the 1983 elections, 
the accord is an agreement 
between the Government and 


between the Government and 
the ACTU — the employers’ 
organisations declined to join— 
that wages will be indexed 
against the rise in the consumer 
price index. In return the 
unions agree not to seek 
increases in real wages, provid- 
ing there is economic growth. 
The ACTU also agreed to defer 
making productivity increases 
part of the accord at least until 
1885. 

The indexed wage agreements 
run for six months, based on the 
previous six months’ level of 
inflation. The first came into 


effect in October 1RS3 and was 
for 4£ per cent followed in 
April 2384 by 4.1 per cent (This, 
lasted for a year because the 
introduction of medicare public 
health insurance offset other 
price movements.) 

This, in itself; was seen, again 
as a moderate gesture by the 
ACTU in that it was viewed as a 
sign of its willingness to accept 
improvements in the social 
wage as an offset to cash wage 
rises. In the autumn of 1985 
what has become* known as 
“ accord marie two ” was negoti- 
ated. 

Inflation, having dipped by 
some 5 percentage points over 
the life of accord mark, one, 
started to pick up again. To 
counter the effects of the depre- 
ciating dollar, the ACTU agreed 
to partial indexation. The CPI 
figure was discounted by 2 per- 
centage points. The November 
2365 accord allowed for a wage, 
rise of 3.8 per cent and when it 
was negotiated again in July 
1988 it was for 2.3 per cent and 
again two percentage points 
were discounted. 

This time though there was 
the question of the productivity 
increases postponed from 3983 
to 1985 and then again from 1985 
to July 1988. It was agreed that it 
would not be tabled as a claim 
of 4 per cent in money wages, 
but as a superannuation pen- 
sion scheme to cost initially 3 
per cent of the wage bill in 
return for productivity gains. 

The accord has been a success 
so for, accounting, the Govern- 
ment believes, for a foil in real 
wages of between 4 and 5 per 
cent over the course of its life 
Mr Bill Kelty of the ACTU says 
he thinks the fall in wages has 
been steeper, given that the 
level of inflation has risen to 
just over 9 pet cent 
For its part, the Confedera- 
tion of Australian Industry has 
worked out that real wage costs 
rose by just over 1 per cent 
during the period of the Accord 
and, it says, the Government 
figures were based on the 
national wage case which is a 
m ini m um and take no account 


of drift and the considerable 
variations which are Woven 
around the national wage case: 
Economists at fite GAL .admit, 
however, that a 1 per cent 
Increase over four years, if that . 
is the current figure, would be 
no mean achievement 
For the first three years of the 
accord, 600,900 new jobs were, 
created. There were also job 
losses and signs of increased ; 
competitiveness were difficult 
to pin down, but unemployment 
foil from 10 per cent during this 
period to just over 8 per cent 
In the fourth year of- the 
Hawke government; strong 
growth in the economy, fuelling 
a sharp -rise in imports, has 
started to slow down add will- 
probably do so even further as 
the government tries to tackle 


the balance of payments deficit^ 
and a foreign debt of more than 


and a foreign debt of more than 
AglOOm. 

As the slowdown occurs, 
'however, and hew jobs become 
harder to find there are fears 
that the accord will start to 
unraveL As Wilma Spence at the 
Conciliation Commission in 
Sydney says: “ These awards, or 
contracts, usually last for four 
or five years and then break 
under the strain." 

Mr Willis says that his Govern- 
ment has very much in mind the 
government of Mr James Cal- 
laghan in Britain in 1978-79: 
after three or four years of mod-' 
oration in wage barg aining, the 
social compact fell apart during 
the winter of discontent of 197W- 
79l 

Pay rises of up to 6^ per cent 
have now been agreed for the 
7m wage earners. The arbitra- 
tion commission agreed to a flat 
rate of A|10 a week for every- 


one, equivalent to 2.4 per cent 
on the average wage of A$418 a 
week. In addition, there is to be 
a negotiable "second tier” of 
up to 4 per cent, to include pro- 
ductivity gains. Superannuation 
will be subject to arbitration 
later in the year. With inflation 


should be a farther foil in real 
wages this year. 

Stewart baity 


people with industrial or union 
backgrounds, rather than fede- 


backgrounds, rather than fede- 
ral or state courts backgrounds. 

The commission— or, strictly 
speaking, commissions, since 
there are state bodies, as well as 
the federal one— deal in the 
first instance with the Austra- 
lian Council of Trade Unions, 
which represents around 80 per 
cent of unionised workers. 

The ACTU and the commis- 
sion thrash out a national wage 
case each year, or For shorter 
periods, when circumstances 
demand. The wage case is less a 
norm for national wages than a 
minimum guideline. 

Because of a quirk of the Con- 
stitution, the ACTU cannot go 
on and press the national wage 
case through the arbitration 
and disputes procedures, but it 
can act for any of the individual 
unions. At present there are 
some L900 cases being consi- 
dered by the commission in Syd- 
ney. The official commissions 
; (or tribunals) not only decide on 
pay but also regulate conditions 
I of work, sick leave, overtime 
j rates, holidays and so on. 

The system obviously has its 
drawbacks. The commissions 
tend to look for solutions in dis- 
putes on moral and humanita- 
rian grounds, rather than on the 
basic economic reality, but this 
can mean that strikes are short 
lived, when they occur. 

It can also mean comparabil- 
ity settlements bordering on the 
ludicrous. A welder in Darwin, 
for example, will receive the 
same wage increase as his coun- 


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Capacity. Commitment, 




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financial Times Monday March 


30 1987 


( AUSTRALIA 7 ) 



vn 


,nves tment level 


3 ®rT' 

iffSfgSSSSai fflc 




“°°* k .contrary to party 
P® cy. The situation has been 
improving latterly, hot Ml? 
»me awkSird - 

ences. 


Manufacturing industry 

remains weak 


Imports 



expert- .... „ . * .. ... . . ’ .-y.^ » *. l s 

■iff 5 ^-“ <?o now south r i gs 


Wales town of yran 


g£f h ^^ndcoton the tex- 

SSu? l ? ,Be 80(3 footwear 

lnaostty. Senator Bntton was 
S^*w 3 “*? *W townsfolk weaS 
bl ^ck arm bands. A card- 

.htehoSf^6S ,peared 0lrt!ide 

JKJSSt?*® 1 ’ “ otor vehicles, 

has been necessary. 

J1I22: P° lirie s with their 
£2*t£?S easure tariff s were 
5S^Si ^ Senator Button. 
j^Jf® oUier ^imgs were 
ignored— management, indust- 
r^gahono, quality control. 

"We're about change,” he 
dMlares °f his Government. 
We've had to fix up the 
tr aditi onal _ industries, use 
carrotan d-sti ck policies to make 
them perform better.” 

Part of the strategy ha« been to 
lower protection in order to 
make them face up to the issues. 
More generally. Senator Button 
has elso tried to encourage a 
smft in emphasis to value- 
addded resource-based indus- 
tries and to create an improved 
environment for high-technol- 
ogy industries. 

“Our manufacturing base 
must in future get out of the 
labour-intensive activities and 
concentrate on ad ding value to 
raw materials in a range of 
industries. This is the only long- 
term base of national advan- 
tage,” he says. 

The results are slowly coming 
through. The turn-round in the 
steel industry, achieved with 
the help of BHP, Australia's 
largest company and principal 
steel-producer, is widely 
reckoned to be the Govern- 
ment's greatest manufacturing 
success. 

When Labor came to power in 
1963 and the world steel indus- 
try was in the doldrums, BHP 
was actively considering 
whether to close down its steel 
operations altogether. 

Now, little more than half-way 
through a five-year steel plan 
worked out with government 
and unions, it is claiming to be 
.one of the most efficient produc- 
ers in the world. 

The story in other sectors is 
less dramatic but no less signifi- 
cant As Senator Button 
explains it the small shipbuil- 
ding industry under Labor now 
enjoys a SO per cent increase in 
employment 

In a reduced motor industry, 
notorious for its inefficiencies 
and currently suffering a 30 per 
cent drop in sales compared to a 
year earlier, there are still five 
manufacturers producing for a 
small market But _ the long- 
promised shake-out is virtually 
certain to take place this year. 

“As long as 1 am here, the car 
plan will go ahead,” says Sena- 
tor Button, determinedly. The 
plan, formulated in 1984 aims to 
restructure the industry and 
make it more efficient by cut- 
ting the number of models pro- 
duced from 13 to six or less. 
-The minister is less happy 
about the Government's final 
position on the textiles, clothing 
and footwear sector, where a 
compromise on the target level 
of tariffs reflected clear pphb- 
cai worries about the ele ctoral 
impact in the towns affected. 
The sector employs around 


81 82 83 84 


; &li i't li V : 

85 86 


tile most heavily protected, 
enjoying tariflh up to a ma x - 
““““of 134 per cent. 

Under the Government's prog- 
ramme, which only starts in 1969 
and lasts seven years, tariffs 
wm be cut to 60 per cent for 


selves, however, the sector 
undoubtedly has a role to play 
in improving the balance of pay- 
ments and contributing to eco- 
nomic growth. 

The opportunities appear to 
•iah.;.. — j — -- -«’»«■ ■«* lie in building on the country's 

25S5a? 0tl *ff tt ““P» oroopetitive advantage in pro- 
cent tor footwear. For some fab- during agricultural and mine- 
ral-based raw materials, and on 
its Uglily-developed base in 
education, skills and 
technology. 

Obvious examples of the first 
category lie in the wool, leather, 
wood, steel, aluminium and 
other raw materials sectors. 
This is not a simple process. 


ncs, the level will be 40 per 
cent 

Consumers will therefore con- 
tinue paying more than neces- 
sary for siich items, and it is 
quite ppssible that producers 
will still not be able to compete 
adequately against foreign 
manufacturers. 

Indeed, the problems of most 
of these “traditional” 
maufacturing sectors in Austra- 
lia is that they have been sup- 
plying a small domestic market 
and, in many cases, still perfor- 
ming badly, despite the protec- 
tion they have enjoyed. 

In the decade to 1083-84, for 
example, import penetration 
increased from 17 per cent to 25 
per cent of the total domestic 
market for manufacturing, 
reflecting the declining com- 
petitiveness of Australian 
manufacturers. 

The biggest source of these 
manufacturing imports is East 
Asia, and particularly Japan, 
which supplied around one- 
quarter in 1985. The task faring 
the Australian manufacturing 
sector is to produce more of 
these imports itself and to 
export more of its output 
This means overcoming the 
obstacles of the past and using 
the changed circumstances of 
the present to encourage growth 
for the ftatnre. 

Such obstacles have included 
heavy rates of protection, low 
rates of investment lost produc- 
tion because of industrial dis- 
putes, large Increases in real 
unit labour costs and a grossly 
overvalued exchange rate. 

Under Labor,, many , of these 
impediments are being tackled 
directly — some, like protective 
tariffs, more slowly than others, 
like the exchange rate, which 
was floated In 1983. 

The level of industrial 
disputation has also improved 
under Labor, although work 
stoppages over trivial issues 
still dog some sectors. Poor 
management often appears to 
be as much to blame as recalcit- 
rant unions. 

Unit labour costs have been 
largely contained too, although 
“on-costs” add some 25 _per 
cent to wage bills and remain a 
source of complaint from 
employers. 

Despite the improvements, 
manufacturing investment 
remains weak. Business invest- 
ment in plant and equipment, as 
a proportion of GDP, is cur- 
rently at historically low levels. 
Among other things, it has been 
hampered by biases in the taxa- 
tion system and expectations of 
low profitability. 

Given all this, it is hardly 
surprising to find that manu- 
facturing has an unfortunate 
image in Australia and is seen 
by many as the poor relation to 
agriculture and mining. 

After all, its contribution to 
GDP and employment has slip- 
ped markedly over the past 15 
years, and as a sector it has 
failed to match the major con- 
tribution made by manu&ctur- 


Fine wool products are often 
made from blends of wool not 
produced in Australia. 
Environmentalists hamper the 
growth of a full-blooded paper 
industry. 

The second category includes 
biotechnology and medical 
technology. 

This is what countries such as 
Singapore, Taiwan and South 
Ko^ea— or even Britain — also 
wish to encourage, which means 
it will not be enougi for Austra- 
lia merely to claim better skills. 
That is one reason why it is 
offering handsome tax incen- 
tives for companies to conduct 


research and development. 

The real key to success, 
however, will be competitive- 
ness at home and abroad, which 
in the first instance means tak- 
ing advantage of the 32.5 per 
cent depreciation of the Austra- 
lian dollar since the beginning 
of 1965, 

So far the response of Austra- 
lian manufacturers has been 
slow, partly because it took time 
for the depreciation to be pas- 
sed on, and partly because of 
the uncertainty produced by the 
Instability of the exchange rate. 

For those manufacturers who 
have found local alternatives to 
needed capital equipment 
unsuitable, the option of import 
substitution has simply not 
been available. They have 
therefore faced a rise in the 
costs of investment 

Another difficulty is that 
some of the countries from 
which imported manufactures 
are bought, ftor example in East 
Asia, have themselves depreci- 
ated their currencies or boosted 
productivity in a way that allows 
them to remain competitive. 

Australia nevertheless 

imports eight times more manu- 
factures than it exports, a posi- 
tion which plainly can be 
improved. 

In the field of export 
ti on the response 
manufacturers to the deprecia- 
tion has undoubtedly begun, but 
from a low base: of the country’s 
12 main manufacturing sectors, 
only four have a ratio of exports 
to turnover of more than 15 per 
cent 

Those which are ftiliy export- 
oriented are obviously better 



bigots awaiting export from the Tomago Aluminium Smelter. Manufacturing needs to concentrate on 
adffing value to raw materials, says the Government— “this is the only long-term base of natfooal 


placed to capitalise on the 
depreciation than companies 
which produce for the domestic 
market and export only when 
they have a surplus. 

Either way, increased invest- 
ment is necessary, if not at home 
then overseas' in order to 
encourage export activity from 
a domestic base. Increased 
export opportunities may also 
arise for multinationals with 


subsidiaries in Australia, whose 
investment, pricing and market- 
ing decisions are made abroad. 

For them, Australia may now 
look more attractive as a place 
to manufacture and export from 
than before— as long as the reg- 
ulatory environment continues 
to be relaxed. 

Though there is a long way to 
go before all these changes 
come about, signs of progress 


are readily apparent. For that, 
and for his firmness and frank- 
ness, Senator John Button is far 
less openly disliked than he was 
a year ago. 

Indeed, he remains one of the 
Government's key assets, ana 
deservedly enjoys the respect 
both of his colleagues and of the 
business community. 

Chris ShenwHI 



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IV 


■ - - "<s 



The rural crisis is " the worst situation since the 
depression of the early 1930s ” 

Farmefs hit hard 


WATCHING THE national o®" He claimed he was paying 
Australian news in Melbourne °*®r P® rcent - 
it was a little surprising to find Mr- MfJ} 0 8 pr f? ic 2?*l ma l? r 
the second lead item was the may n ot turn out to be too pes- 
eviction of a 30-year-old farmer, simistic. Prospects are varied, 
Mr. Roger Maloney, along with but it is true that a considerable 
Mb tearful wife, from their farm number of farmers such as Mr. 
near Garema in central New Maloney are being increasingly 
South Wales. squeezed in a vice of sharp and 

„ nF ___ steadily falling prices of com- 

- thL modi ties, particularly wheat, on 


defaulting termer on the news snQ nS5 

seemed, not so much a reflec- posts on the other. These 

tzon at Australia swell-known higher input costs for 

items suchas oil and fertiliser, 
with its own affairs, as a real because of duties, but 

also, because imports are more 


after the 25 per cent 


m°n devaluation JlStrrtta 

since the depression of the late doJlar against the US dollar 
19208 aQ d early 1930s. since January IMS. But more 

Mr. Wade Mahlo another far- especially they centre on high 
mer from Garema who turned 


To these costs the National 
Federation of Farmers would 
add the escalation in wages, 
although the Australian council 
of Trade Unions would almost 
certainly not agree with them. 

The agricultural sector 
remains extremely important to 
Australia. It accounts for just 
under 5 per cent of Gross 
Domestic Product, with 378,000 
workers on the .land (around 6 
per cent of the work force). 
Exports of agricultural goods, 
still account for just under 40 
per cent of the total, some 36 per 
cent crops and livestock, 2 per 
cent fish and 1 per cent forest 
products. 

According to Dr. Robert Bain, 
the Director of the Bureau of 
Agricultural Economics (BAE), 


out to support Mr. Maloney said faces average borrowing rates 
80 per cent of the fanners in the' of 17.6 per cent this year, as the 
district faced the same fate in Government tries to keep the 


interest rates. The farm sector ^e problem on the demand side 


the next 12 months. Mr. Maloney 
said that “it was the interest 
rates which really destroyed 


dollar steady, and struggles to 
get its budget deficit under 
control. 



is not one of volume but a ques- x - - . ■. ~ ^~*^^SK^SSSS!!^ . -mBs * ■’ 

tion of getting value for the pro- ‘ - * 

*><**• • • • ■ • ■' 

“You must remember we w;*'" f 

export well over 80 per cent of — ._■ ■■■ - . ■■ — ■ - - 

everything we produce. With the One of many motorcycle cowboys, sheep farmer Laddie Richardson, of New South Wales, drives lus 
exception of raw mUsAm along an old stock mite. Draught Mt many farm areas last year. Now the sector Is struggling with 
to m **«a*te, N*l> IntofMJ rates and falllnjS commodity prtces. 




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The company believes in controlling its own destiny and manages 
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As well as a solid base of gold production. Me tana continues to add 
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price-takers," he says. 

“The fact that the US and the 
EEC subsidise their fanners 
means we face shrinking mar- 
kets and a declining price for 
our goods particularly wheat 
and cereals. There is very tittle 
subsidy of fanners here— in 
fact, virtually none." 

The terms or trade for Austra- 
lia's farmers, defined as the 
ratio of prices received to 
prices paid, has declined 
steadily in the 1980s. With 1980- 
81 as the base year of ZOO, the 
index fell to 89 in 1981-82 and 
moved down to 73 in 1986-87. 

The index of rural production 
in terms of real net value 
declined from 100 in 1980-81 to 
56 in 1986-67 (the year being end 
of June to end June.) 

Although incomes have 
picked up a little in 2886-87, by 5 
per cent to A$16.4bn compared 
with A$15.6bn in 198586, the 
projection of the BAE until 
1991-92 is that gross rural 
income will decline steadily to 
A$13.9bn in that year in 198687 
prices. Costs should be trimmed 
somewhat from A$12.7bn in 
298687 to A11.5bn, but this will 
still leave the net value of rural 
production at A$2.3bn com- 
pared with A$3.6bn in 1986-7. 

What this prices-led shake-oat 
on the demand side has meant 


when combined with higher advice, borrowed Swiss Francs replaced by a system based on 
costs on the supply sideis a at 4 per cent Then came the common law contracts between 
gloomy picture of squeezed devaluation of the dollar and employer employee, and there 
margins, rising indebtedness, the cost of servicing these debts should be penalties for 
falling numbers of farms and an more than doubled. breaches of such contracts, 

increasine number of hanknint- The BAE reckons that at least Hie NFF in the end, though. 


increasing number of bankrupt- 
cies. 


25 per cent of farmers are along with almost 


__ everyone 

~‘Mt John Kerin, the Minister experiencing negative incomes else, agrees that many of 
for Primary Industry, reckons and the figure could be a lot Australia’s agricultural prob- 
that farm property values have higher. Some 10 to 20 per cent of lens are outside its control, 
dranned bv 40ner cent in the term® could be a risk. This means that the consumer 

faSmS The problems among farmers will spend eight times 
^siHv hvasmnch as 50 Mr are not evenly spread. They the market price for his 
possibly by as mac as pe upon product mix, man- rice. Dr Bain says his most 

rwnoiTi at tho RAW oavs that agerfal competence -and luck, [mediate worry is the US Food 
faS^ro^es^^ostog Alot of the indebtedness stems Security Act, the so-called Farm 
♦« 9 Zl tom the drought years of 1982- AcL Under it the US govern- 
63. Many fanners borrowed then me nt is spending $2bn on its 
ce 3 1 ® rV and have not since been able to Export Enhancement Prog- 

nn climb out of debt ramme. This means in the short- 

compared with 179.000 m 1983. Crain generally and wheat in term the US will subsidise 
He estimates that 25 per cent particular, is the main current wheat and beef exports to third 
of these farms have no debt at troubled area It is here that the world countries by undercutting 
all. Some 50 per cent have debts us and EEC are forcing down the Australia prices by some- 
°f around A$40,000 on average prices with sales of subsidised thing between 910 and $20 a 
while the bottom25jper cent surpluses. There are also fears tonne. 

have debteofA$100,000 ranging however, that in the future, sub- To counter these subsidised 
up to A$300,000. sidised sales of US grain fed prices, the Australian Prime 

" With interest rates nudging beef and dispersals from the Minister, Mr Robert Hawke at 
20 per cent some of these guys EEC beef mountain could cut the recent conference of world 
have to find A$40,000 in interest into Australian markets, par- leaders at Davos, in Switzer- 
each year before they can think ticularly in the Far East land, proposed a seven point 


banks' 


Bond Corpomtion Holdings Limited 


per cent in 1986-87, wheat fell by 2. An early reduction in admi- 
25 per cent cistered prices for farm pro- 

Many fanners are moving out dueer prices for . 1966-7.-. • - 
of producing wheat exclusively 3. The narrowing of the price 
and are going into mixed far- gap to be expedited by interim 
ming, that is producing some measures aimed at containing 
wheat and other cereals and supplies and quar antining 
livestock. Other cereals, of stockpiles where prices remain 
which the main ones.were bar- high. 

ley oats and soxgham accounted 4. Farm income support to be 
for A$578m in exports in 1986- separated wherever possible 
87. The BAE estimates that only from producer prices for farm 
18 per cent of all farmers are output 


Bond Corporation Holdings limited ' ;■ •' /. of A 

achieved record Jesuits for the first half of die ;:■■■ '■?■■■ toad 
1986-87 financial year, to 31 Decotfber 1986 •' 


401 I VI/tl/f W -v-^f 

" ... -v • r ‘ ■ : A}- "-UA 
V /V '• 'l* . '7 w; 


now solely wheat and crop 
specialists. 

The National Farmers 
Federation feels there are 


and crop 5. The development of princi- 
ples for national governments to 
Farmers liberalise world trade, 
there are fi. An accord on international 


. . V 


tom bjtoW % 

Sewing's otitifer xpfrte twabd^ ‘ > V. ^ 0 

id jnedb tetesresfe X 

— --TOL-m is... '.Vi; 


items and atoex taxafem i 




•' ’v:? 

» v - . . .';X 


moves that the Goverment could agricnltural reform to be agreed 
make to help alleviate the dis- at the economic summit in 
tress. Venice in June. 

Mr Garry Gouch er, t he Chief 7. Negotiations on agriculture. 
Economist at the NFF reckons within the Uruguay Round, of 
that the protection of secondary effective disciplines on the 
industry imposes an annual off- operation of direct and indirect 
farm cost of A£L5bn on the sec- agricultural subsidies and sup- 
tor. The NFF has called for port programmes, 
tariff cuts which would allow All these measures if they are 
cheaper machinery purchases adopted at all will take time. As 
as well as cheaper spare parts far as reform within the Gatt 


and chemicals. 


Uruguay round is concerned, as 


above the value at 30 i$86. 


Bond Media limited w^ soofr be a$ ; 


The Fanners Federation also Mr Goucher says, “ there is no 
argues the Government should point holding your breath." 
bring down the level of inflation Wool, wheat and beef will con- 

which at 9 per cent is several tinue to be produced in Austra- 
times the level of OECD part- Ua but almost certainly in a 
ners, by reducing the budget stimmed-down way. It will be 
deficit the roiddle-1990s before prices 

This would help bring interest begin to rise, if then. Mean- 


rates down. 


while, the country faces a pain- 


foundationofpowerftticafihfbvrefrDm 
activities selected for ‘ 





The Federation has also cal- fai period of adjustment fox 
led for action against trade industries which were once 
unions. It says that Australia's automatic money-spinners. 

centralised and inflexible wage ^ , _ .. 

fixing arrangments should be swewan UaiD) 


/ . *.» .(■ ' "r.: < 

'X .. J ( . ■* 

; ; •; ■ ■' y, : . , \ .. '. •. ■’>: -r "• ' .v ■/ 


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WESTERN AUSTRALIAN COMPANY 
ADDS LUSTRE TO ITS CLUSTER 

As an innovative venture capital finance company, EQUITY 
FINANCE LTD has recently added the jewel to its array of High 
Tech development projects and companies, namely 100% of the 
company. which invented the renowned BlEtON hydrothermal 
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Other interests include an array of underwater robots, as well as 
a London-based operation which has the world-wide marketing 
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An amazing technological breakthrough in the production of 
man-made emeralds was announced by EQUITY FINANCE LTD 
in Perth on the 6th of February. Some of the BIRON crystals have 
been examined by the Chairman of the Gemoioglcal Institute or 
America, who wrote: '‘The BIRON process produces single 
synthetic emerald crystals of remarkable size and clarity . . 

The BIRON hydrothermal emeralds are virtually 
indistinguishable from its natural counterparts, and the 
company is gearing up to reach full production by July 1987, 
when a production rale of 250.000 carats of rough ciystals per 
year will be reached. 

The company is proud of its high dividend policy whereby 
dividends plus bonuses which has resulted in hand-outs to 
shareholders amounting to over 100ft per annum since the 
company was first formed. 

The company welcomes new investors to its register as well as 
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Equity Finance Ltd 

G.P.O. Box L913 

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Tel: 09-322-6028 

TLX: A A 95125 

FAX: <091 481 0154 


Financial Times Monday March 30 1987 

Miningjndu^ 

Profits rising 
at last 


AUSTRALIA’S MINING com- 

ing. new investment K steady. 
aS profits are at last picking 

U % has not been an easy strug- 
gle. Miners and mine managers 
have often opposed the drastic 
changes in working practices 
which have been necessary. 
Senior executives have some- 
times been lulled into a false 
sense of security by tl» dec J| n ? 
in the Australian dollar which 
offset the worst effects of the 
decline in US dollar commodity 
prices. 

But in the end the recession, 
particularly in non-ferrous me- 
taJLs. has been so prolonged that 
managers and trade union lead- 


in the iron ore mines in the 
Pilbara, in northern Western 
Australia, operators have 
forced through changes in work- 
ing practices to improve pro- 
ductivity in ways which would 
have been unthinkable in the 
1970s. Mr John Ralph, chief 

executive of CRA, says: 

“ There’s been a sea-change in 
relations between managers 
and workers.” 

There is certainly a long way 
to go in improving conditions at 
some mines, as a bitter dispute 
at Peko-Wallsend’s iron ore 
mine at Robe River showed ear- 
lier this year. _ ■ 

Productivity in Australian 
coal mines is notoriously poor. 
The number of days lost per 
1 000 employees in 1985-86 was 
more than three times higher m 
coal than in the rest of the-mirh 
industry. Mr Chris Tram- 


each year before they can think ticularly in the Far East land, proposed a seven point 

about working capital,” says Dr Australia's main exports programme to stabilise world 
Bain. broke down roughly as follows commodity prices. It included 

The total institutional debt of in 1986-87 wool A$3.4bn, wheat L A commitment to halt sub- 
farmers is pnt at A$8bn. Worst- A$&2bn, meat and live animals sidy escalation and to freeze 
hit of all were those farmers (mostly beef) A$L9bn and and progressively reduce the 
who. at their local banks' others (rice, sugar, dairy etc gap between administered 

1 AS3-6bn). Whereas wool and internal prices and inter- 
meat and live animals both natinnai market prices for farm 
increased in value terms by 12 goods. 


What do 

LONDON 

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TIMES 


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Financial Times Monday March 30 1987 


52Yemmem pians to attract 
more busin ess settlers 

Immigration 

levels are 

set to rise 


( AUSTRALIA 9 ) 



IX 


Australia’s migrant intake 


P* Perish* was 
dicta of the ftther 


TOM totter antah 



■■■■I 


^ ■ 



m 

Faulty 

1977-78 

20.372 

1978-79 

17225 

1979-80 

18,359 

1980-81 

19.570 

1981-82 

21,769 

1962-83 

26.952 

1983-84 

33,957 

1984-85 

43,118 

1685-86 

49,774 

Refugees 4 SHP 

9.59> 

13,450 

19,954 

21,847 

21317 

17.054 

14,769 

14.850 

11340 

Other 

43.965 

38,074 

42,966 

69.773 

75.014 

49.171 

21,079 

22421 

30.766 

Total 

73,934 

68.749 

81471 

1IU9Q 

118,700 

93.177 

69.065 

78.087 

92.410 

Pmportta of iota! 
Family 

Refugees & SHP* 

Intake 

27.6 
- 13.0 

25.0 

20.0 

22.6 

24.6 

17.6 

19.6 

18.3 

16.5 

28.9 

18.3 

48.6 

2L2 

52.7 

19.0 

53.9 

12.8 

Otherf 

59.4 

55.0 

52.8 

62.fi 

63-2 

52.8 

30.2 

283 

333 

Total 

100 

100 

100 

100 

100 

100 

100 

100 

100 


^on programme, Arthur Cal- 

*** oow filtering through the 
23*™* OT Prime Minister 

S2,_. Government, 

Ukoagh the justification for 
“peased immigration has 
changed &om a supposed threat 

nom its populous Asian neigh- 
bonra to the threat of economic 
stagnation. 

The Hawke Government has 
broken from the traditional 


Sheeted new jobs by increasing 
they may disad- 

85L«2PW^. the cuiSS 
SSSSf 1 ,s fading on the 
JJES *** cautiously. There is 
AiMbT5.r* > - po&l ^ OD to opening 

Doodgatesto 
SJEHJ* and theHawfce Gov- 
excels in com- 
puting the political costs of 


t Includes bu sine ss immigrants and immigrants under occupational sham system 
Source; Govwnmcm safeto 


- £JS£ Par ty support, are gen 


^ Ajae Dre&E 

was initiated by former Minister 
.“““tenttinn and Ethnic 
£“**** C ^ is Hurford. who 
had gained widespread support 
Jjwa long-run, migrant-led eco- 

JSSEJE^ 0 ”^* ^ Hurford 
managed to raise migrant arri- 
vals when the Austr alia^ ecQ. 
homy was sluggish and 
unemployment rates were 

Labor Party president Mr 

^T Y , 0l ^. wh0 waa recently 
appointed minister foUowing a 
minor Cabinet reshuffle^ is 
5P?gJ* ? S" 17 on U»e torch, 
lit lfc h ® d been a ““take to working 

in tee^S?^ tniimberSdrop settling in 

steb^fi S V th? me ^ IieVes m influential group of 

migration prog- academics is also warning the 

increases in imm?^ government against more 

SSseShte ? n T grant& 10 editorial and 

jore^abie^tur^bethonec 0 - feature pages of some major 

nomic and humanitarian newspapers, academic writers 


5£!!?«. averse to immigrants 
wnom they see as rivals for jobs. 

!3Si t J ,nions stress they do not 
object to immigrants them- 
selves but complain that the 
government does not have 
enough apprenticeship prog- 
rammes to absorb new arrivals 
the work force. 

Many Australians, subeon- 
feeling guilty about the 
whites’ dominance over the 
original Aboriginal residents, 
may publicly support Increased 
immigration. But privately they 
rear, at times envy, the hard- 
working foreigners who often 


grounds,” he says. 

Underpinning the Govern- 
ment's support For increased 
immigration is an official study 
which found that a larger flow of 
I mmigr ants would boast econo- 
mic growth in the longterm. The 
three-year study, jointly spon- 
sored by the Immigration 
Department and the indepen- 
dent Committee for Economic 
Development of Australia 
(CEDA) concluded higher 
immigration would lead to 
higher per capita investment, 
higher labour productivity 
through economies of scale, and 
a short-term worsening of the 
external account which would 
be partly offset by greater capi- 
tal inflows. 

The study also gave the Labor 

Party a mmuni tion a gainst the 
argument that immig rants take 
jobs from Australians. It found 
that immigrants generally 


quite frequently question the 
need to boost immigration. Mr 
Glen Withers, professor of eco- 
nomics at Melbourne’s Latrobe 
University and who closely 
watches immigration issues, 
says the core of these academics- 
are radical economists, espe- 
cially from Sydney University. 
He says the group's stance rests 
on the argument that immig- 
rants in Australia, somewhat 
fike the guest workers in 
Europe, are exploited and rele- 
gated to low-paying unskill ed 
Jobs. 

Prof Withers says such an 
argument is flawed because 
most studies have shown that 
later-generation immigrants 
have assimilated well in Austra- 
lian society, often holding 
responsible and lucrative jobs 
and mixing well with neigh- 
bours and the community. . 

The Government’s concern for 


the political cost of a liberal 
immigration policy is demons- 
trated by the extreme caution it 
exercises In drawing up the 
numbers. Lath year, the former 
minister Mr Hurford's proposal 
to raise immigrant intake to 

95.000 was readily accepted by 
the Cabinet 

Bnt he foiled to get backing 
for specific increases for the 
subsequent years. He proposed 

an intake of 110,000 in 1987-88 
and 125,000 in 198*49, and in 
the long-term to more than 

100.000 a year or 1 per cent of 
the total population. 

Cabinet decided that specific 
numbers would be drawn after 
community response had been 
assessed. The newly-appointed 
Mr Young is not yet prepared to 
state the figure he would pro- 
pose for 1987-88 but he said 
Cabinet had agreed on a slight 
increase. 

In order to make increased 
immigration more palatable to 
Australians, the Government 
has modified immigrant assess- 
ment procedures which now 
favour the young, skilled, edu- 
cated and employable English- 
speakers. And in order to soften 
opposition from unions, the 
Government introduced an 
occupational sharing system 
under which foreigners 
applying outside the family 
reunion programme must pos- 
sess skills not adequately filled 
by Australians. 

Mr Young’s appointment itself 
seems designed to maximise 
Labor's political advantage 
from what is called the ethnic 
vote. When he was shadow 
minister for immigration, Mr 
Young had argued strongly for 
greater post-arrival services for 
immigrants. 

Now he is minister, he could 
be expected to set the same 
argument in motion again, fie 
can be expected to devote more 
time and resources stroking the 
backs of settled immigrants and 
keeping them happy. 

Mr Yonng himself said: “It is 
not good to bring people into the 
country if the services are not 
adequate to get. them settled 
down and if they become disad- 
vantaged.” 

Some Labor Party members 


Mining 

outlook 


Continued from page 8 

Mr Brian Loton, managing di- 
rector or BHP. the steel, energy 
and minerals group, says the 
productivity improvements in 
Australian industry reflect 
similar improvements in heavy 
industry in the UK, the US and 
elsewhere. He adds: “ 1 am 
totally convinced we can do a 
great deal better.” 

The mining companies will 
have to do j ust that if they are to 
bring their financial perform- 
ance back to respectable levels. 
In 1985-86, the average net re- 
turn on equity funds in the in- 
dustry was under 6 per cent for 
the fifth year running, accor- 
ding to survey published by the 
Australian Mining Industry 
Council. . _ _ 

The shortage of equity funds 
flowing into the industry, except 
for gold mining, has forced 
groups to raise borrowings to 
record levels where they total 
127 per cent of shareholders’ 
funds. 

Nevertheless, says the survey, 
there is room for hope. This is . 
borne out by stockb raking 
analysts who forecast a sharp 
improvement in profits this year 
for a number of reasons. 

First, the benefits or pro- 
ductivity improvements should 
continue to flow through; then 
here have been modest u>- 
-reases in the prices of some 
products, such as zinc and mine- 
ral sands. Thirdly, rising gold 
production should put a shine 
in the results of a number of 
najor groups, notably Western 
ufiniwff - as well as fuelling the 
-ise of a new generation of com- 
panies. such as Barrack House 
V Australian Consolidated 
lerals. Finally, a number of 


Goid output 


100 tonnes 


and prices 


A$ per fine ounce 700 


forecast 



198! 83 85 

Sousa: ConsoMated GoWMdc 


groups wrote off several years’ 
worth of accumulated foreign 
exchange losses in 1985-86 and 
are unlikely to have to do the 
same again. 

To prove the point some 
strong results are already com- 
ing through- Ren Ison Goldfields 
Consolidated recently reported 
a 115 per cent rise in interim 
profits, due largely to its mine- 
ral sands interests. 

In the US the quest for 
prosperity, and even survival, in 
minerals in the 1980s has led to 
sharp overall cuts in capacity. 
In Australia, where orebodies 
are generally larger and often 
more recently developed, com- 
panies have tried to maximise 
output as one way of reducing 
unit cost As a result, although 
there have been some closures, 
overall output of most base me- 
tals has been maintained. In 
coal and iron ore output has 
risen thanks to investment in 
new mines and in expanding 
existing ones. 

In 1985-86 coal was 20 per cent 
higher than in the previous year 
at 155m tonnes; iron ore produc- 
tion rose 7 per cent to S8m ton- 1 
nes. However, this year iron ore 


producers will be hit by sharp 
cuts in orders from the depre 
ed Japanese steel industry, the 
biggest customer. 

The Australian gold industry 
has already become a stock mar- 
ket legend in the 1980s, with 
fortunes made and lost follow- 
ing junior companies mainly in 
Western Australia The major 
groups were left standing In the 
rush to develop new mines, 
although several have since 
caught up, notably Western 
Mining. 

Overall output, which was 
under 20 tonnes in 1980, could 
reach 100 tonnes in 1988 — 
Australia’s centenary year. 

The stock market ratings 
given to some of the gold pro- 
ducers can exaggerate their 
economic importance. In 1985- 
86. gold accounted for just 23 
per cent of Australia’s export 
earnings, compared with 6 per 
cent for iron ore and 16 percent 
for coal. However, with returns 
on capital of 100 per cent not 
uncommon, it is no wonder that 
investors have little time for 
anything else. 


Stefan Wagstyl 



have been concerned that the 
Hawke Government’s standing 
with the ethnic communities 
may have been damaged by 
recent budget decisions such as 
the cutback in flinding for Eng- 

lis h-as-secon d-I a ngu age courses 

and the absorption by the 
Australian Broadcasting Com- 
mission of the Special Broad- 
casting Service, a television sta- 
tion which broadcasts foreign 
shows. 

It was under a Labour Govern- 
ment that the importance of the 
ethnic vote was first recognised. 
In 1972, Prime Minister Gough 
Whitlam appointed Mr A1 
Grassby as immigration minis- 
ter whose policy centred on wel- 
fare for the increasing number 
of immigrants. 

In the late 1960s, migrant arri- 
vals rose to about 180,000 a year 
and social services collapsed 
under the weight of numbers. 
Mr Grassby seized the opportun- 
ity and chased the ethnic vote 
with the slogan, “The Family of 
the Nation." 

Under Mr Hawke, an Office of 
Multicultural Affairs was set up 
and attached to the prime 
minister's own department A 
strategy is being drawn for 1987 
with Mr Hawke himself taking a 
prominent role in activities 
aimed at chasing the ethnic 
vote. 

Apart from social services for 
immigrants, another area where 
the new minister could be 
expected to keep a high profile 
is in business immigration. This 
category of immigration had 
yielded the greatest benefit to 


Australia yet successive govern- 
ments have failed to cash in on 
it 

There had been unsatisfac- 
tory rises in the rate of arrivals 
of business immigrants. After a 
surge by 38.4 per cent in 1983-84. 
the rate of increase dropped 
dramatically to 6 per cent in 
1984-85. Last fiscal year, the rate 
only slightly improved to 15 per 
cent 

The benefit that could be 
derived has not been lost to the 
Government A 1984 survey by 
the Immigration Department 
showed that 90 business immig- 
rants transferred A$883m 
(US$57. 3m) to Australia and that- 
48 of the businesses generated 
exports worth about A$200m 
(US$130m) between them. 

Mr Young said he was con- 
sidering proposals to relax 
existing rules in order to attract 
more business immigrants. 
Under current procedures, 
applicants need A$500.000 
(US$325,000) to invest in a new 
venture in Australia or to take 
over approved enterprises. An 
entrepreneur possessing 
“exceptional” skills or new 
technologies could come in with 
only A$1 50,000. 

The proposals under con- 
sideration include a transition 
period under which an appli- 
cant would merely lodge the 
required money, come into 
Australia to explore business 
opportunities and later decide 
whether or not to tie up his 
money and settle in Australia. 

Emilia Tagaza 



Bicentennial 
schooner 
takes shapes 

THE HULL of a 35-metre schooner— 
Britain’s gift to the youth of Australia 
to mark the county's bicentenary— 
nears completion (above) at Brooks 
Marine. Lowestoft, one of Britain's 
oldest shipyards. 

The steel-hulled vessel, featuring' 
the best of British maritime design 
traditions, will set sail with her 
Austral larVBrttish craw in late July 
and take part In the Tall Ships Race 
from Hobart and arrive in Sydney for 
the bicentennial celebrations, when 
Australia will commemorate the 
founding of the first British 
Settlement in 1786. 

The schooner is suitable for use in 
Australia for both sail training and 
maritime scientific exploration. 
Whereas she is technically a 
brigantine, the terra schooner has 
been used to describe her. She will 
be a fast modem, safe vessel, with 
the roots of her design In UK 
maritime traditions. 

She will normally be used around 


the coasts of Australia and adjacent 
waters for sail training purposes for 
periods of between three and 14 
days' duration and will be operated 
by a Royal Australian Navy crew, 
together with voyage crews of up to 
24 young people chosen from all 
walks of life. 

Construction will be completed by 
May this year when 12 young 
Australians will arrive in Britain, and 
will be Joined by an equal number of 
young people from the UK, together 
with a British captain and British and 


Australian officers. She will M work 
up " in the months of June and July 
1987 on the British home coast 
before sailing in August for Australia. 
She will visit state capitals and then 
take part in the Tall Ships Race from 
Hobart to Sydney, prior to the 
Bicentennial Day celebrations on 
January 26 1988. 

The vessel is being funded tv a 
donation horn the UK Government 
together with financial help from a 
wide spectrum of British commerce 
and industry as well as individual 
donations. 


ufimr ttumantes and bade union leaden are agree tf bat the iodorfty las to become non 
Meanwhile, some modest price Increases In seme products, sucb as Jdoe and mineral 

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Hello, ibis is my first 
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hand side of the road, 






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Worldwide Ifj 


Financial Times Monday March 


AUSTRALIA 10 


AMONG THE diligent export 
teams working for Australia's 
major wine producers there is a 
justifiable sense of excitement 
over the ever-improving sales 
abroad of the country’s highly- 
palatable wines. 

Bat for the vineyards at 
him e— in the valleys of New 
South Wales, Victoria, South 
Australia and Western Austra- 
lia— the swelling foreign 
demand is merely a welcome 
silver lining on a darkened 
cloud. 

For them, the high domestic 
sales growth of the 1970s has 
slowed in the 1980s, over-pro- 
duction has persisted, costs are 
rising and taxes have increased. 
Like most Australian farmers, 
many wine-growers and produc- 
ers are now confronting enor- 
mous financial pressures. 

On top of this, the industry, 
largely through its own errors, 
faces new regulations affecting 
the market for “coolers”— the 
highly- success fill mixtures of 
wine and fruit juice which 
latterly have sustained what 
buoyancy there has been in 
wine sales. 

The recent export perform- 
ance of Australian wines is 
nevertheless astonishing by any 
standards. Figures for calendar 
year 1986 from the Australian 
wine and brandy corporation, 
which promotes exports, show a 
74.7 per cent increase in ship- 
ments over 1985, to 16U3m litres. 

One fifth of these shipments 

w41» Amcrira with 


exports are only a tiny fraction 
of overall Australian wine sales. 
In the year 1985-88 (ending in 
June), they amounted to only 
one-third of 1 per cent of overall 
sales. 

In the same year the grape' 
harvest was a record 906,800 
tonnes, a 1.9 per cent increase 
on the previous year, which was 
itself a record. Of this total, 
almost 510,000 tonnes was used 
for winemaking, a decline of 8.8 
per cent on 1984-85. 

Such is the strncture of the 
Australian industry, close to 60 
per cent of this was crushed by a 
dozen large wineries. So small 
are the rest that 280 “ bouti- 
que ” wineries crush around 2¥t 
per cent of the total. 

Unsurprisingly, it is the large 
wineries which are the chief 
exporters— notably Fenfolds, 

which is part of Lindemans, the 
Adelaide Steamship conglomer- 
ate, which is owned by Philip 
Morris of the US, and Orlando 
Wines, owned by Recfcitt and 
Colman of the UK. 

Of the wine produced, less 
than one-quarter is sold in bot- 
tles as premium and beverage 
wines or as via ordinaire. The 
remainder goes into bulk wines, 
soft-packs (also known as casks) 
and flagons. All compete on an 
equal footing with imported 
foreign wines. 

The soft-packs have been the 
major growth area. Sales have 
risen from 32m litres in 1977-78 
to 163m litres in 1985-86. But the 


IfiauiL iucuscu uu me proaucts 

packaging, for the cooler was in 
a 250ml single-serve tetrapak 
complete with a straw. Even 
more than existing coolers, 
which were packaged In casks 
and bottles and clearly aimed at 
the youth and female markets, 
disappeared to be aimed at the 
young: 

Sure enough, it attracted the 
wrath of legislators and the 
anti-alcohol lobby, and stimu- 
lated a raging controversy 
which saw several state govern- 
ments ban the sale of coolers 
and probably some longer-term 
damage to the market 

Lindemans, the manufactur- 
ers, initially resisted the press- 
ure Grom the state governm ent s 
and from its counterparts in the 
industry, but finally withdrew 
the product 

To preempt further pressure 
and keep the market alive, the 
cooler producers were forced to 
agree to new regulations which 
reduced the alcohol content of 
coolers, renamed them “wine 
coolers’* and confined their sale 
to licensed outlets. The market 
is now very much at a cross- 
roads. 

All this has come on top of last 
year’s budget decision by the 
Government to double the sates' 
tax on wines from ten per ceht 
to the standard rate of 20 .per 
cent .. 

The tax was first imposed on 
the industry in 1984. and was 


LS-ji 


pgrj jjgjj 





frjiinrr? 


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ANZMl»ryBRMELB 


Australian, a factor which has 
also helped the country’s tourist 
industry. 

Even more importantly, the 
Increases reflect the strong 

E rice competitiveness created 
y the depreciation of the 
Australian dollar, which was 
floated in 1963 and then 
weakened substantially 

between the beginning of 1985 
and the middle, of last year. 

The currency has since ral- 
lied— on a trade-weighted basis 
against a basket of other curren- 
cies it now stands at 55 
(1970*100) compared to. a low 
point of under 50 last July, But 
this Is still well below the level 
of 81 seen at the end of 1984. 

Yet the fact remains that, 
despite the improvement. 


wine- and-frnit-j nice mivos 
which have proved remarkably 
popular. 

Asa result sales of bulk wine 

increased from 5.8m litres in 
1984-85 to 17J5m litres last year 
or around five per cent of the 
market 

„ 0f JWs increase, the Austra- 
lian Wine and Brandy Produc- 
ers’ Association, which repre- 
sents growers, estimates that 
lL5m litres went into the new 
cooler market. 

Unfrl January it was certain 
that this figure would rise again 
this year. But a major con- 
trover^ erupted over the pro- 
duct after a Canberra wine met 
chant refused to stock a newly- 
marketed line of coolers. 

The wine merchant’s com- 


ata time when the country;!! 
smuggling with its balance oi 

payments deficit 

. irritation was com 

ESS? Whe -“ 016 Gwenanen 1 
® 8amst recommenda- 
tions and inconsistently, nr con 
tinue exempting the gold mi* 
iug^industry from corporate 

years, however. 
Producers have managed 
.3 _?* sp / te the Govemmeiit, 
S?l, may ** hardy enough^ 
on. Their product has 
raeT* tofprovS 

Artum/*!? 18 Ml1 connoisseurs 

S.SM'srss 

SKTSMJ35t s * rw ^- s, w^ 


Chris Stefwett 


From strength to strength 


AT A time when Australia’s 
traditional primary end 
resources industries are in the 
doldrums, one of the newer 
foreign exchange earners, tour- 
ism, is going from strength to 
strength. 

While the country’s ranking as 
a world exporter fell from 12th 
to 23rd in the decade 1973 to 
1983, tourism increased its 
foreign earnings on average by 
15 per cent each year from 1980 
onwards and stands among the 
top three export industries. 

Australia in 1986 had 1.4m 
foreign tourists and is hoping 
for 2m by 2988, when the country 
celebrates the 200th 
anniversary of the first Euro- 
pean settlement This compares 
with 500,000 arrivals in 1975. 

At the same time the number 
of domestic travellers is grow- 
ing, helped by the depreciation 
of the Australian dollar. Dire- 
ctly or indirectly, total travel 
spending is estimated to sup- 
port 400,000 jobs. 


From international tourists 
the country earned A$L5bn in 
1986, over A$ 1,000 a head. If the 
A$1.2bn paid for Qantas tickets 
in Australia is added in, then 
total earnings were A$2.7bn, 
making tourism the second or 
third largest foreign exchange 
earner. 

Why has tourism in Australia 
suddenly come alive ? Part of 
the reason is that until recent 
years Australialike New Zea- 
land, enjoyed great prosperity 
from high world prices for its 
commodity exports. It did not 
need to think about alternative 
means of earning a livelihood. 
In both countries there was a 
take-it-or-Ieave-it attitude to 
being discovered by the rest of 
the world. 

With the terms of trade for 
their main exports turning 
aggressively against them. 
Australians have had to drop 
their insularity, becoming more 
aware of the wider World and go. 


out and “ sell themselves.” To 
the overseas tourist there is 
quite a lot to sell. 

In the US, the Tourist Com- 
mission has, since 1984, been 
running a series of pheno- 
menally successful advertise- 
ments featuring Mr Paul Hogan, 
or “ Hoges ” as he is known. He 
is the lean bronzed Aussie who 
appears in the Fosters beer, 
advertisements in Britain tal- 
king “ strine ” <or Australian 
slang) one liners. More recently, 
he starred in the hit film “ Cro- 
codile Dundee.” 

The advertisements (which he 
did free because he is 
apparently a great patriot and 
genuinely believes Australia is 
“ Godzone ’’ or God’s own coun- 
try) made him a cult figure in 
the US. The early advertisement 
had him saying ** You look like 
you need a holiday,” and wound 
up with the winds, “ Cmon over. 
I’ll throw another shrimp on the 
barbie ” (barbecue). 


The Americans took up the 
invitation in their thousands. 
Last year 255.000 visited com- 
pared with 200,000 in 1984. This 
year 300,000 are expected and 
although Americans still rank 
second after New Zealanders 
(340,000 visitors last year) they 
should achieve the top slot soon. 

Figures from the office of Mr 
John Brown, the Minister for 
Sport, Recreation and Tourism 
show visas granted in December 
1986 were up by 55 per cent 

Mr Brown says that ** the 
Hogan adverts represented a 
revolution in travel advertising. 
They've won lots of awards, inci- 
dentally. What they did was to 
emphasise the friendliness and 
character of the people. Most 
advertising in the past has been 
a question of pretty views and 
picture postcards.” 

The America's Cup sailing 
race which was run in Freman- 
tle on the west coast earlier this 
year and late last, also gave 


Yachting In Sydney harbour: Australia hopes for 2m tourists by 1988 


Hawke hoists the storm sail 


CooQmed tram page 1 

feel is for too high even though 
the average rates of tax are not 
out of line with most of their 
trading partners; decentralisa- 
tion; smaller government in a 
country over-burdened with 
federal, state and local 
bureaucracies. 

In a sense one of Mr Hawke's 
current major political difficul- 
ties is also one of the most 
encouraging signs that his Gov- 
ernment’s measures are starting 
to bite and set the country on 
the path to recovery. The emerg- 
ence of the ageing maverick. Sir 
Johannes Bjelke-Petersec, 
Prime Minister of the right-wing 
and sparsely populated state of 
Queensland, onto the federal 
political scene indicates some- 
thing is np. 

“Sir Joh” who is 76. has stir- 
red up the political scene by 
opting to make his National 
Party a federal party with him- 
self as candidate for Prime 


Minister and, failing that, the 
kingmaker with a policy veto 
behind the scenes of the present 
opposition coalition parties 
which find themselves in 
extraordinary disarray. 

His promises are sweeping, 
including a flat rate 25 per cent 
income tax, cuts in welfare 
spending and the restoration of 
Australia to a place near the top 
of the world's economic order. 
He has hardly any policy details 
and those that do exist change 
in tone and degree almost daily. 
When asked how he will tackle 
some of the country’s intract- 
able difficulties he responds 
with some variant of “ Don’t you 
worry about that.” 

His presidential-style cam- 
paign, which is a mixture of 
buffoonery and rhetoric, 
appears to have no chance of 
success. But it provides the sort 
of temporary colour and escap- 
ism often sought in countries 


when the going gets really 
tough. 

In the end the political and 
demographic composition of 
Australia means the election 
result hinges on the volatile 
voters in the fifth of the popula- 
tion which roughly comprises 
the “ families under 35 ” group. 
Whatever else they do, they are 
not likely to bring Sir Joh to 
power, even tboogh they have 
borne the brunt of the harsh 
recovery measures. 

On present trends they seem 
more disposed towards the 
opposition, led by Mr John 
Howard. He is ahead in the 
polls and needs to gain just 
eight more rural seats to win — 
at a time when forming com- 
munities are seething about US 
and EEC agricultural policies. 

Mr Howard's problem, apart 
from an unimpressive media 
persona, is that the Labor 
Party — to all intents and pur- 
poses now a Euro-Scandinavian 


social democratic party — has 
1 pinched his policies, leaving 
him little option but to Lrail 
along behind offering the same 
dinner with a different sauce. 

This not necessarily against 
Australia’s Interests although it 
may be politically unappetising 
What Australia needs more than 
anything is stability including a 
degree of political and strategic 
continuity. 

What Australia does not need 
now is some favourable and 
unexpected wind, such as 
suddenly soaring commodity 
prices, to fill its sails and sweep 
it out of trouble before all the 
necessary structural adjust- 
ments have been completed. 
History has repeatedly shown, 
since the arrival of the first 
wretched convicts, that Austra- 
lians are hopeless managers of 
success but excellent managers 
of adversity. They are starting to 
prove it again which is as good a 
cause as any for guarded 
optimism. 


Australia a boost Denis Conner, 
the victorious skipper of Stars 
and Stripes has become a sales- 
man for West Australia. Back in 
the US he has extolled the coun- 
try as a safe, friendly, politically 
stable country. At time of terror- 
ist activities in Europe and the 
Middle East this has an impact 
on Americans. 

The ATC spends some 
A$17.8m of its A$29.8m budget 
on promotion. A large propor- 
tion of this goes on the Hogad 
ad vertisemen ts. 

No less successful, however, 
has been the promotion drive in 
Japan. This campaign known as 
the "I'm Aussie” programme 
stressed the wide open spaces 
of Australia and the adventur- 
ous holidays that are available. 

One of the advertisements has 
a very beautiful young Japanese 
girl standing in the sunset in 
front of a glowing Ayers Rock. 
This monolith is found in the 
middle of the country in the 
middle of a desert For the 
Japanese coming from their 
crowded cities it is almost de 
riffeur to climb the rock if on a 
trip to Australia It is a steep 1.6 
km climb and just over 1,000 ft. 
The climb can also be danger- 
ous- When why they were doing 
this, two young Japanese 
replied it was their “ life’s 
dream.” 

Japanese arrivals have 
increased dramatically. Last 
year there were 155.000 tourists, 
compared with 119,000 in 1985 
and 80,000 five years ago. In the 
visitors’ league table, Japan 
still lies behind the rest of Asia 
(193,000 last year), the UK and 
Ireland (173.000) and the rest of- 
Europe (158,000), but Japan is 
clearly closing fast The number 


of visas granted during Decem- 
ber 1986 rose by nearly 70 per 
cent 

Mr Bill Gray, the Media Dire- 
ctor of the Australian Tourism 
Commission, says the promotion 
is targeted at Japanese agen- 
cies. There is a huge market he 
says, in young single women 
workers — they often earn salar- 
ies as secretaries of AS30.000, 
yet live at home. They have 
money to spend. Once these 
young Japanese women are 
“captured.” they often come 
back to Australia on honey- 
moon. It is said that Cairns, on 
the tropical northwest of the 
continent, opposite the Great 
Barrier Reef, is the second most 
popular foreign honeymoon 
spot for Japanese after Hawaii. 

Australia has been sold as an 
unexplored continent, almost 
the last wilderness whose 
people are friendly and 
welcoming. But it also has the 
right facilities for tourist com- 
fort. In Mr Brown’s phrase you 
can take the choice between 
** the beach or the bush.” 

The Gold Coast, stretching 
south of Brisbane, is a ribbon 
development rather like Miami. 
There are large and small 
hotels, holiday homes, beach 
restaurants, bare and other lei- 
sure venues. The North east is 
tropical and good for diving and 
big-game fishing. 

More than 75 per cent of tour- 
ists enter through Sydney, 
however— and many are content 
not to move on. 

The famous Sydney Opera 
House, the harbour bridge and 
the old restored Rocks area 
(where the first convicts 
arrived) are almost obligatory 
visits. 

Nearby, there are also safe 
beaches, fishing facilities and 
the Blue Mountains for adven- 


ture holidays. Further South 
there is ski-ing in the Snowy 
Mountains for three months or 
the year. Close to Sydney are the 
Hunter Valley vineyards where 
a very pleasant day out can oe 
had. 

Welcome though the 
increased tourist arrivals have 
been, however, they have aggra- 
vated and highlighted prob- 
lems. 

Although space and distance 
are one of the attractions of 
Australia, the travelling 
involved can bite twice a t the 

S ocket and the. nerves. Austra- 
a is a long way from any- 
where— and everywhere in 
Australia is a long way once you 
get there. As Mr Paul Ruby of 
the New South Wales Tourist 
Commission comments: 

H People come here on a busi- 
ness visit, thinking they will 
quickly nip up tp Darwin or 
Ayers Rock. This is like going to 
London for a week and hoping 
to take in Stockholm, Budapest, 
and Morocco.” 

Australia operates what is 
known as a “ two-airlines 
policy.” Qantas, the inter- 
national airline, owned by the 
Government, is allowed to carry- 
only its own passengers, not 
those from other international, 
carriers. 

Passengers have to take either 
the state-owned Australian Air- 
lines. or the privately-owned 
An sett Airlines. Although both 
would deny that their prices are 
out of line with other countries, 
it does seem to many travellers 
that they have a restricted 
choice in terms of scheduling 
and have to pay quite a high 
price for domestic flights. 

Another problem is (he lack of 
facilities at the main gateway 
airports and Sydney, in particu- 
lar, which has become grossly- 

Wine exports 


overcrowded and lacks adequ- 
ate reception and information 
services for the volume of tour- 
ists. 

There are ten hotels of inter- 
national standard in Sydney 
with 4,060 units. This is clearly 
not enough, since year-round 
occupancy rates are effectively 
100 per cent There is a prog- 
ramme of more hotel building, 
but there is very evidently 
imm ediate pressure on space.. 

Australia, like New Zealand, - 
has never before had a mas? 
tourism market, so there is no 
long tradition or service.- The 
standard is often below, what 
international travellers hare . 
come to expect, but the situa- 
tion is improving as training 
schemes go into effect' Forth?, 
enzjore, rising unemployment is , 
releasing workers tnto thlspar- 
ticolar sector. - ' •V-iS 1 / '■ . 

But it is not just the attitude of - 

management and staff - - that 
effects tourism potential— there . 
are also a number of otherdifff ’ 
cutties. Penalty . . rates for. 
weekend work, negotiated 7 fey 
the unions, can often mean that 
prices go up at weekends: fix the . 
big cities there are also archaic: 
licensing laws and restricted, 
shopping hours in force. : 

It has been estimated 'that 
Australia currently only has 2. . 
per cent of international tourui 
arrivals: A recent' Economist . 
Intelligence Unit survey said ; 
that world - tourism should 
increase by 2JS per cent np to 
1995. Clearly Australia has greats 
potential, bat as the Australian 
Tourist • Commission has 
warned, immediate and effec- 
tive action must be taken con- 
cerning - the infrastructural 

problems if this international 
tourism potential is to be real- 
ised. - 

Stewart Daiby 


Ever-improving sales